No sooner did Donald Trump buy himself some time to shore up his empire than the clock began ticking for his next showdown with gambling regulators.
The state Casino Control Commission voted 5-0 to approve Trump's plan to put up his three Atlantic City casinos as collateral for a $65 million bank loan he received to make a $43 million bond payment on the Trump Castle casino.Trump had argued his empire could have collapsed without the commission's approval.
But the commission decided to call Trump in early for relicensing hearings on all three casinos because of questions about his financial stability. Trump wasn't scheduled for the hearings until the spring; the commission wants to see him in October.
"We must hold a financial stability hearing as soon as possible," said Chairwoman Valerie Armstrong. "The Casino Control Act requires all casino enterprises to maintain financial stability, integrity and responsibility."
The October hearing comes one month before Trump must make a $47 million bond payment on his Trump Taj Mahal casino.
The state Division of Gaming Enforcement, the commission's enforcement arm, said Trump won't make that payment under present conditions but that the bailout buys the developer time to put his financial house in order.
Armstrong said the commission was also troubled by the bailout but had no choice but to approve it.
Trump said that once the economy improves, his assets will rebound.
The Trump empire has amassed more than $3.2 billion in debt on Trump's casinos, Manhattan real estate, Trump Shuttle airline and yacht.
The Taj Mahal lost $14.4 million in its first three months ended June 30, according to figures from the Casino Association of New Jersey. Trump Plaza casino had a profit of $876,000, while Trump Castle lost $8.1 million.