Donald Trump returns to Atlantic City

Posted on August 21, 2009 by CasinoBazar

Billionaire Andy Beal may have sworn off poker after taking a multi-million dollar beating from The Corporation in 2006, but his recent $100 million bid for three bankrupt Trump Entertainment casinos suggests that the eccentric banker still enjoys big gambles. This is the second time that Beal has backed a big Donald Trump investment scheme; Trump Entertainment already owes his bank $500 million.

Trump lost control of the casinos' operations in 2005 as part of their second bankruptcy, and in February finally grew weary of his impotence as an unpopular chairman and stepped down. This month Trump came back to the boardroom packing cash. He and Beal plan to re-privatize the company and restore it to profitable operations through a major financial overhaul. Along for the ride is Trump's golden child, Ivanka. While her contribution to this endeavor is unclear, the Donald has vowed that the two Trumps will “make Atlantic City hot once more.”

It's going to be an uphill battle for the determined trio. The sellout won't be official until it is approved by a bankruptcy judge, and current Trump Entertainment bondholders (who also attempted to buy out the ailing company) are already preparing their case against the deal. The company brings with it some pretty heavy baggage including a $1.7 billion debt load—less than a third of which is owned by Beal Bank—and a net Q2 loss of $443.1 million.

Source: GamblingPlanet