Trump obtains note payment default forbearances from noteholders, lenders

By Caroline Salls

Pittsburgh, Dec. 31 - Trump Entertainment Resorts Holdings, LP and Trump Entertainment Resorts Funding, Inc. has secured forbearance agreements from holders of about 70% of the outstanding principal amount of its 8½% senior secured notes due 2015 and the lenders for its $490 million senior secured term loan in connection with the company's failure to make the interest payment due Dec. 1 on the notes.

According to an 8-K filed Wednesday with the Securities and Exchange Commission, both the noteholders and the lenders have agreed not to exercise their default-related rights until Jan. 21.

The company said it is still in discussions with its lenders and the noteholders regarding a possible restructuring of Trump's capital structure.

Trump is an Atlantic City-based owner and operator of three casino resort properties.

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