A Stitch in Haste

For those of you who are still foolishly enamored by “The Apprentice,” an update to my earlier Trump-bashing post:

Trump Hotels and Casino Resorts Inc., trying to restructure $1.8 billion in debt, said late Wednesday that it and DLJ Merchant Banking Partners had ended talks that would have provided the company with a $400 million cash infusion.

In a brief statement, the company owned by real estate mogul Donald Trump said the debt-laden firm had, by mutual agreement with DLJ, decided to terminate talks that began in February. DLJ is an affiliate of global investment banking giant Credit Suisse First Boston.
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The agreement with DLJ would have required Trump to relinquish his title as the company’s chief executive, while allowing him to remain as chairman.

The failure of the talks casts doubt on the company’s ability to make upcoming payments on its debt and may complicate ongoing discussions with bondholders on its restructuring plans.
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Last week, Trump Hotels said it would use a 30-day grace period to delay an interest payment that was due that week. Meanwhile, some bondholders have balked at the terms being offered by the company in its attempts to reorganize. The plan would cut interest payments by about $110.2 million a year, but without the support of at least two-thirds of all bondholder groups, the prospects of that occurring are unlikely, according to analysts.

There are capitalists and entrepreneurs far more deserving and praise and emulation than Donald Trump. In the real world, there’s no “immunity” from being a rotten businessman.

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