P.M. BRIEFING : Trump Offers Casino Equity Deal

The Trump Organization is planning to offer equity in the Trump Taj Mahal Casino Resort to bondholders in exchange for delaying payments due in November, according to a report published today.

Revenue from Donald Trump’s three Atlantic City casinos are not meeting expectations that would allow the developer to pay $47.3 million due to bondholders Nov. 15, the New York Times reported.

Trump’s recent financial restructuring had been relying on a summer in the casino industry comparable to 1989, the paper said, but that did not happen.

This year marked the first time Atlantic City’s 12 casinos posted overall second-quarter losses since gambling was legalized in New Jersey. The April-through-June period previously had been a profitable quarter for the gaming halls.

Reports for August showed that the Taj Mahal took in more than any other casino, $36.9 million, but that still was less than the $1.3 million a day, or $40.3 million for a 31-day month like August, that analysts said was needed to break even.