Citing competition and the recent economic meltdown, Trump Entertainment will miss it's $53.1 million scheduled payment on it's 8.5% senior secured notes scheduled due 2015 in order to maintain required liquidity.
Donald Trump is the non-executive chairman and the largest shareholder of Trump Entertainment. Trump Entertainment owns and operates three Atlantic Casinos, The Trump Marina, Trump Taj Mahal and the Trump Plaza on the Boardwalk.
The company has about $1.25 billion in notes currently outstanding. In a statement Friday, Trump Entertainment said, "that it has a 30-day grace period to pay up and will meanwhile seek talks with its lenders to revamp its capital structure and improve its liquidity."
If they fail to make the payment in within the 30 day grace period, holders of a quarter of the notes and lenders could accelerate the maturities of those obligations.
If things looked like they couldn't get worse for the Donald, he is being sued by Deutsche Bank in a New York court for a $40-million personal guarantee he made to help get financing for the 92-story Chicago high-rise that is currently in development.
Deutsche filed the suit Friday, charging that Trump defaulted on the loan earlier this month by not paying off $334.2 million due to Deutsche Bank.
This after Trump filed suit accusing Deutsche Bank of denying extension of a Nov. 7 maturity date for a $640-million loan.
Trump is claiming the lenders are harming condo-hotel unit sales and that a "force majeure" clause in the loan agreement applies, since the world financial crisis is an extraordinary event that permits a loan extension.