Trump's woes shouldn't affect new casino

Associated Press
August 10, 2004

Plans for a new southern Indiana casino were expected to moved ahead as projected despite an announcement by Donald Trump's casino company that it will seek bankruptcy protection, state regulators and the company said today.

The Indiana Gaming Commission voted 4-2 last month to award Trump Hotels & Casino Resorts the contract to build a casino in the Orange County town of French Lick.

"The commission has known for several months that bankruptcy was a strong possibility in order to make Trump's recapitalization plans a reality, and the decision was made with that information in mind," said Jennifer Arnold, deputy director of the commission.

The casino group plans to enter Chapter 11 bankruptcy next month, emerging within a year, under the plan announced late Monday.

Scott Butera, Trump casino's director of corporate and strategic development, said today he did not believe the bankruptcy plan would affect the company's $108 million proposal for Orange County.

Trump's group said it would open the casino with a parking garage adjacent to the French Lick Springs Resort & Hotel. The hotel about 60 miles northwest of Louisville, Ky. is one of two resorts that catered to celebrities before the Depression of the 1930s.

Trump also promised to give $10 million to the two hotels for renovations.

"As we stand here today, we haven't made any changes," Butera said.

Arnold said the state commission was confident the company would follow through with its plans. On Friday, the commission voted to renew for one year the license on the Lake Michigan casino boat the company owns in Gary.

"We believe the company will be stronger than ever once this recapitalization plan is complete," Arnold said. "We don't anticipate any delays or negative impacts on the French Lick project."

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