Donald Trump resigned from the board of Trump Entertainment Resorts Inc., the debt-laden casino company he founded, over disagreements with bondholders, Bloomberg reported.
"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 the company will file for bankruptcy, he said. Trump is "not thrilled" the company may continue to use his name.
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.
Tom Hickey, a spokesman for Trump Entertainment, and Chief Financial Officer John Burke didn't return phone messages left after normal business hours.
Trump Entertainment's three casinos have been through bankruptcy twice. Holders of most of company's $1.25 billion in notes and Beal Bank Nevada, which is owed $490 million, have agreed not to exercise default rights for interest or principal payments until 9 a.m. New York time on Feb. 17.
The company's market value has tumbled to $7.3 million from its peak at $842 million in August 2005.
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