It was just reported that in order to maintain sufficient liquidity to continue its operations, Trump Entertainment Resorts will have to miss a $53.1 million interest payment on its 8.5% senior secured notes due 2015 that was originally scheduled for yesterday.
Although the casino operator still has a 30 day grace period to make the payment, it's reminiscent of the last time Trump defaulted on its debts and had to seek bankruptcy court protection in 2004. Trump is trying to restructure its debt so it can stay in business - last year they lost $371 million. Trump shares lost a lot of their luster, and now reportedly hover at around 25 cents a share.
Deutsche Bank sent Trump $13.2 million for a hotel construction project in Chicago, but they are also both suing each other over the project and late payments by Trump.
It may not be long until Trump hears the word from his bondholders - Donald, you're fired!
It's possible that by next year, it may be a contest to see who is poorer, Donald or Rosie O'Donnell.
Ironically, Trump's ex-wife Ivana, is also undergoing a financial restructuring of sorts, having filed for divorce from her fourth husband, Rossano Rubicondi. They married last April and split about three months ago, but kept it secret because Rossano was appearing on the Italian version of Survivor. Survive this, Rossano!