Feb. 13 (Bloomberg) -- Donald Trump resigned from the board of Trump Entertainment Resorts Inc., the debt-laden casino company he founded, ahead of a possible involuntary bankruptcy filing next week.
“I’m not managing it, it’s not me that’s responsible for managing,” Trump, who was chairman, said in a telephone interview today. “Unless we’re going to be responsible for management it’s just not something that’s worthwhile.”
Trump’s departure comes ahead of a Feb. 17 deadline to make a $53 million bond payment originally due on Dec. 1. The Atlantic City, New Jersey-based casino operator said at the time it needed to conserve cash and hold debt-restructuring talks with lenders. Since an initial grace period ended on Dec. 31, Trump Entertainment’s deadline has been extended four times.
The 62-year-old real estate entrepreneur has “no idea” whether there will be a bankruptcy filing, he said. Trump is “not thrilled” the company may continue to use his name.
Bondholders are planning to force Trump Entertainment into Chapter 11 bankruptcy early next week, the Wall Street Journal reported today, citing unidentified people familiar with the matter.
Trump controls 28 percent of the stock, according to a March 21 regulatory filing. His daughter, Ivanka Trump, also resigned, according to an e-mailed statement.
“I strongly disagree with the bondholders’ decisions and actions,” Trump said in the statement without elaborating.
Tom Hickey, a spokesman for Trump Entertainment, and Chief Financial Officer John Burke didn’t return phone messages left after normal business hours.
‘It’s a Disaster’
In the interview, Trump cited the “disastrous” fates of Atlantic City’s Tropicana Casino Hotel and the under-construction but not fully funded Revel Entertainment LLC project.
“It’s a disaster and I see what’s happened with so many others, and I don’t want to be a part of it,” Trump said.
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