CHICAGO-BASED ANALYST PREDICTS CASINO FUTURE

April 27, 2001 7:54 PM
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Trump Hotels & Casino Resorts Inc. of Atlantic City has been predicted to undergo a debt restructuring. Barbara Cappaert of KDP Investment Advisors said the Trump Indiana riverboat will not be able to generate enough cash flow after the June interest payment to service debt on the $109.5 million of notes issued by the company’s Trump Holdings unit.

The total annual debt obligations for Trump Indiana is $23 million which includes June and December interest payments. Cappaert projected the casino will generate $14.2 million in earnings before interest, taxes and depreciation, which measures cash flow. Donald Trump said the first quarter amount shows the casino is on track and the riverboat is doing well.