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Taj Mahal in the red again.

Taj Mahal in the red again

The magnificent Taj Mahal Casino in Atlantic City is no longer in bankruptcy. A prepackaged plan, agreed to by developer Donald J. Trump and casino bondholders, was approved by the Federal bankruptcy court on Oct. 4. Trump was very pleased with the plan which was given quick approval by the court. "I think it's really great," he said.

The plan reduces the interest rate on the bonds while the bond holders take an equity position in the project. Trump can continue to manage the casino and raise his current 50 percent position so long as he meets the targeted goals established in the approved workout petition. Trump said his interest will rise to 80 percent as goals are met.

"The Taj has turned out to be terrific," he said.

Abraham Wallach, senior vice president of First Capital Management said, "With a substantial reduction in the interest rate on the bonds, the casino should now be able to meet its debt obligations. Mr. Trump and his staff are to be congratulated for a successful restructuring whereby the developer stays in place and is given a chance to improve operations as the economy improves."

Wallach said this plan could act as a model for what other borrowers and lenders can do to work things out together.
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Title Annotation:Taj Mahal Casino in Atlantic City, NJ no longer in bankruptcy
Author:Weiss, Lois
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Oct 16, 1991
Words:220
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