Trump AC Casino Raises $110 Million Face

Donald Trump's casino had no luck and little money.

Chapter 11 continued, but the bankruptcy reorganization allowed Trump to write off hundreds of millions of dollars in debt and tap new funds for expansion and renovation projects instead of destroying cash-strapped companies.

In the first phase of its post-bankruptcy reconstruction plan, Trump Entertainment Resorts announced on Wednesday that it would spend $110 million to renovate three aging gambling homes.

"Atlantic cities won't have this kind of product. When we're done, it will be beautiful," Trump said in an interview at his New York office.

Trump, the president of a company that bears his name, now has the money to back up his pride. The bankruptcy reorganization cut $100 million from the company's annual debt payments and included a new $500 million credit line. $253 million will be added by the recent sale of Trump's Riverboat Casino in Gerry, Indiana.

"The company is very strong financially," Trump said. "The company came out of bankruptcy really well and was really strong. We have tremendous credit and tremendous cash flow."

The first phase of the renovation plan will include projects from 2006 and 2007. The company is still discussing the total cost of the reconstruction program, including a price tag for a new hotel tower scheduled to open in 2008 at the Trump Taj Mahal Casino Resort.

"We haven't really decided on that. But the word is, whatever it takes," Trump said of the cost of construction.

Trump Entertainment has already refurbished many of its hotel rooms in three casinos and will now completely renovate the building's public spaces, adding to the excitement and jazz needed to attract whimsical gamblers.

"The renovation includes a range of projects designed to enhance the unique strengths of each of the three properties," said James B. Perry, chief executive officer of Trump Entertainment. "Our goal is to focus on what matters most to our clients, and to create a unique and exciting place designed to add value to their Trump Atlantic City experience."

Trump Entertainment needs to refurbish its casinos to keep pace with its boardwalk and marina rivals. Borgata Hotel Casino & Spa has launched a $525 million expansion project, while Hara's Atlantic City is planning a $550 million refurbishment.

In the flagship Taj Mahal, the hallway leading from the parking lot will be converted into a walkway with new shops and restaurants. New luxury Asian game zones, noodle bars and casino lounges are also planned.

Old boardwalk entrances at the Trump Plaza Hotel and Casino will be given facelifts and the lobby area will be changed for improved access. New Yorker Deli will be replaced by a new restaurant.

"The combination of Trump Plaza's newly added Liquid Bar and EVO restaurant will make the ground floor from the boardwalk entrance to the hotel lobby feel more exciting and modern," Perry said.

The Trump Marina Hotel Casino will renovate its conference and convention spaces. A new restaurant is also planned.

To boost employee morale, the company has budgeted to improve new employee uniforms and employee cafeterias at three casinos.

Trump Entertainment has already spent $32 million on renovation projects this year, on top of its $110 million reconstruction plans in 2006 and 2007. By mid-2006, the company will be fully updating the standard rooms of the three buildings and refurbishing the casino floors at Trump Plaza, Perry said.

The core of the renovation program is the 800-room hotel tower in the Taj Mahal. Construction will begin in June next year, and it will be completed in 2008.

Trump said the price of the tower is still being determined. Although the designs have not been released yet, Trump promised that the project will add a surprisingly new dimension to the Taj Mahal's skyline.

"It will be a really beautiful tower," he said.

While refurbishing the Atlantic City Casino, Trump Entertainment is eyeing expansion opportunities in other gaming markets. The company recently announced that it will seek a gaming license for a new slot store in Philadelphia when Pennsylvania introduces casino-style gambling in 2006 or 2007.

Trump Entertainment replaced the now-defunct Trump Hotel & Casino Resorts Inc when it emerged from Chapter 11 bankruptcy protection in May. Trump's casino empire was threatened with $1.8 billion in huge debt when it filed for Chapter 11 in November 2004, but the company's transition to a financial surplus included profits from the third quarter of the year. 안전한 카지노사이트