In a blatant case of corrupt dealings the United States Bankruptcy Court is helping Trump Atlantic City Associates declare bankruptcy. This is the second time the company scurried into bankruptcy protection but the first time it did this way. This time the US Bankruptcy Court is helping them with remodel and expand.
Trump Hotels & Casino Resorts Inc., is $1.3 billion in the hole with only $1.5 million in properties. The bankruptcy case was taken by the U.S. Bankruptcy Court for the District of New Jersey.
They took a gamble and the US Trustees backed them with a stake. Uncle Sam has now a high stakes gambler.
Morgan Stanley (Research) agreed to provide a $500 million line of credit, which will be used to renovate and upgrade the casinos and push into new markets, like Pennsylvania and Las Vegas. Beal Bank committed to $100 million in interim financing.
Bear Stearns, (Research) Bank of New York Co., (Research) J.P. Morgan Chase & Co. and Goldman Sachs Group Inc. (Research) are among the largest creditors.
So there you have it – the Department of Justice is now in the gambling and remodeling business.
They are willing to provide protection and the largest banks in the nation are lining up to elbow each other out the way to put their money in slot machines.
Want to make a bet they are honest, hardworking bureaucrats and gamblers? There is no justice from gamblers and bankers whose investment plan throws good money after bad.
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