Amid ‘Apprentice’ success, Trump’s casinos in trouble


  • Business
  • Thursday, 01 Apr 2004

ATLANTIC CITY: While Donald Trump basks in the popularity of his runaway hit reality TV show, “The Apprentice,'' the auditors for his Atlantic City casino property are raising alarms over the financier's real-life debt load. 

In a letter to the Trump Hotels & Casino Resorts board, auditors for Ernst & Young LLP said the debt-laden company, which runs three Atlantic City casinos, was struggling under stiff competition, recurring operating losses and had a working capital deficit as of Dec. 31, 2003. 

Donald Trump

The letter, dated earlier this year, was made public on Tuesday as part of Trump Hotels' annual report filed with regulators. 

“The company is working on various alternatives to improve the company's financial resources ... Absent the successful completion of one of these alternatives, the company's operating results will increasingly become uncertain. These conditions raise substantial doubt about the company's ability to continue as a going concern,'' the auditors said. 

Last month, Trump announced that Credit Suisse First Boston had agreed to make a US$400mil cash infusion into the company in exchange for a controlling stake. 

Trump Hotels, which carries US$1.8bil in debt, has been unable to finance major capital improvements at its Atlantic City properties at a time when competitors – including the new Borgata Hotel Spa & Casino – have been luring away gamblers. – AP

For more foreign business news click here

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Alibaba’s Lazada hires Ant Group veteran to head up payments
ACCCIM welcomes govt approval to bring in 32,000 foreign workers for plantation sector
Gadang bags Central Spine road subcontract worth RM100mil
Digital drive propels Eco World sales growth in Q3�
KLCI in the red as key heavyweights weigh
Oil fall as US storm-hit supply makes slow return
UOB Kay Hian upbeat on gaming as NFOs restart operations
With creditor talks progress, AirAsia X eyes end-Oct meets
China seen holding benchmark rate in Sept, some expect more liquidity support
Asian shares steady, but set for weekly losses as global growth fears nag

Stories You'll Enjoy


Vouchers