Chapter 11 followed, but instead of destroying cash-strapped companies, the bankruptcy reorganization allowed Trump to shake off hundreds of millions of dollars in debt and fund new expansion and renovation projects.
Trump Entertainment Resorts Inc. announced Wednesday it would spend $110 million to renovate three aging gambling sites in the first phase of its post-bankruptcy reconstruction plan.
“Atlantic City won’t have a product like this. When we’re done, it’ll be beautiful,” Trump said in an interview at his New York office.
Trump, the chairman of a company that bears his name, now has the money to back up his pride. The bankruptcy reorganization cut the company’s annual debt repayment by $100 million, and included a new $500 million credit limit. The recent sale of Trump’s Riverboat Casino in Gary, Indiana, will bring in another $253 million.
“The company is very strong financially,” Trump said. “The company came out of bankruptcy really well and really strongly. We have tremendous credit lines and great cash flow.”
The first phase of the renovation plan will include projects in 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 Trump’s Taj Mahal Casino Resort.
“We haven’t really decided on it. But whatever it takes,” Trump said about the cost of construction. 경마사이트
Trump Entertainment has already refurbished many of its three casino hotel rooms, and in the process, it will fully open the building’s public spaces, adding the excitement and jazz needed to attract quirky gamblers.
“The renovation includes a variety of projects designed to enhance the unique strengths of each of the three properties,” said James B. Perry, CEO of Trump Entertainment. “Our goal is to focus on what’s most important to our customers, and create unique and exciting locations that are designed to add value to their Trump Atlantic City experience.”
Trump Entertainment needs to keep its casinos in order to keep pace with its competitors on the boardwalk and marina areas. Bogata Hotel Casino & Spa has begun a $525 million expansion, while Harrer’s Atlantic City is planning a $550 million renovation.
The classic Taj Mahal renovation will include turning a corridor from the parking lot into a walkway with new stores and restaurants. A new luxury Asian gaming area, a noodle bar, and a casino lounge are also planned.
The old boardwalk entrances to the Trump Plaza Hotel and Casino will be provided with face lifts, which will be supplemented by changing the lobby area for easier access. New Yorker Deli will be replaced by a new restaurant.
To boost employee morale, the company has budgeted for new employee uniforms and employee cafeteria improvements at three casinos.
Trump Entertainment has already spent $32 million on renovation projects this year, on top of $110 million in reconstruction plans in 2006 and 2007. Perry said he will fully update standard rooms on all three properties and refurbish the casino floor at Trump Plaza by mid-2006.
The heart of the renovation program is the 800-room hotel tower in the Taj Mahal. Construction will begin next June and will be completed in 2008.
Trump said the price of the tower was still being decided. While the designs have not been released yet, Trump promised that the project would add a surprisingly new dimension to the Taj Mahal’s skyline.
“It will be a really beautiful tower,” he said.
While refurbishing its Atlantic City casino, Trump Entertainment is seizing expansion opportunities in other gaming markets. The company recently announced that it will seek permission for a new slot store in Philadelphia when Pennsylvania introduces casino-style gambling in 2006 or 2007.
Trump Entertainment replaced the now-defunct Trump Hotels & Casino Resorts Inc. in May when it emerged from Chapter 11 bankruptcy protection. Trump’s casino empire was threatened by a hefty $1.8 billion in debt when it filed Chapter 11 in November 2004, but the company’s financial surplus turn this year included a lucrative third quarter.