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Trump optimistic after casino rescue scuttled Thu Sep 23, 2004 NEW YORK, Sept 22 (Reuters) - A day after a rescue plan for Donald Trump's casino empire was scuttled, the star of the reality show "The Apprentice" said he is not worried about the company's prospects. Trump said in an interview that he aimed to forge a new deal with bondholders, some of whom had been skeptical about the plan just scrapped, and was also considering taking the company private or selling some assets. "I believe we have some wonderful options," Trump said. "One of them is a deal with the bondholders, one could be a sale of an asset or something, and one of them could be a possible privatization of the company." Trump's casino company, Trump Hotels and Casino Resorts Inc. (DJTC.OB: Quote, Profile, Research) , said late Wednesday that it and DLJ Merchant Banking Partners had scrapped a plan that would have provided the company with a $400 million cash infusion and restructured the company's $1.8 billion in debt in a "prepackaged" bankruptcy. Trump, who has consistently downplayed the financial importance of his floundering casino empire, said it represents only about 1 percent of his net worth and insisted its troubles would not tarnish his image. The casino company is separate from Trump's main real estate holdings. "When people see what we do and how professionally this has been handled, I think it is actually a positive for my reputation," he said. Trump did not rule out a restructuring in bankruptcy court but said it was too early to say if he would take that route. "If we do strike a deal (with bondholders) I think it would be fairly quickly, meaning over the next week or so," he said. Some bondholders had balked at the original restructuring proposal because they would have taken a loss on their investment. Bondholders have a mortgage on Trump's casino properties, giving them the right to foreclose if the company does not make good on its debts. The plan would have cut interest payments by about $110.2 million a year. In a brief statement late on Wednesday, the casino company said it 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 (CSGN.VX: Quote, Profile, Research) . "The company is now pursuing with its bondholders alternatives with respect to a potential restructuring of the debt securities of the company's subsidiaries, and a recapitalization of the company," Trump Hotels said in a statement late on Wednesday. Additionally, Trump -- who is a 56.4 percent owner of the company's stock -- said he may take the company private. "I have a very strong cash position, so I would do it myself," he said. Trump's company owns three of the dozen casinos that operate in Atlantic City, but the properties have been buffeted by competitive pressures as rivals build new hotel towers and revamp properties. The company posted a loss in its latest quarter and last week said it would use a 30-day grace period to delay an interest payment that was due that week. Interest payments are draining more than $200 million a year from the casino company, leaving it unable to renovate or expand its properties. 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. Company officials have actively courted investors
in a broad attempt to prevent Trump's casino holdings from going
under.
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