P.M. BRIEFING : Trump Offers Casino Equity Deal

ATLANTIC CITY, N.J. —  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.