Trump Hotels Makes $73 Million Interest Payment to Bondholders By Jeannine DeFoe
Atlantic City, New Jersey, May 1 (Bloomberg) -- Trump Hotels & Casino Resorts Inc., which has held talks with bondholders to restructure $1.9 billion in debt, made a $73 million interest payment due today.
The payment was made on $1.3 billion in Trump Atlantic City Associates bonds maturing in 2006, said Treasurer John Burke. The company, led by developer Donald Trump, threatened to withhold interest payments last year because it was seeking to amend the debt terms.
Trump Hotels has said it expects to generate enough cash flow from its casinos to meet interest payments this year. Trump Hotels made a $67 million payment due on the Trump Marina Associates debt last month, Burke said.
``Everything is being paid on time,'' he said.
The Atlantic City, New Jersey-based company said last week it plans to sell $470 million in first mortgage notes to repay some of its bonds. Trump Hotels shares rose 25 cents to $3.04 today and have risen 164 percent this year.
Trump warned last year that the Sept. 11 attacks and New York's plan to allow the development of American Indian-run casinos would drain gamblers from Atlantic City, the No. 2 casino market after Las Vegas.
Trump Hotels owns three casinos in Atlantic City, including the Taj Mahal, and a riverboat casino in Indiana. The company also manages the Trump 29 casino in southern California for an American Indian tribe.