Donald Trump's Atlantic City Casinos Finally Turn a Profit

For the first time since its Chapter 11 Bankruptcy reorganization, the casino company owned by Donald Trump has turned a profit.

In the first quarter since it emerged from bankruptcy, Trump Entertainment Resorts, Inc. earned a profit of $3.2 million. This sum pales in comparison to revenues garnered by most casinos in Atlantic City and elsewhere, but is considered excellent progress for the Trump casinos.

The Trump Company, which owns three casinos in Atlantic City, never made a profit since going public in 1996, in part due to being saddled with a $1.8 billion junk bond debt. The casinos and their hotels were forced to skimp on renovations and even cleanliness. At the Trump Plaza, for example, financial problems meant that the housekeeping staff had to make do with only 45 vacuum cleaners for 904 rooms.

The bankruptcy forced the Trump casinos to stick to a strict reorganization scheme. It removed Donald Trump from the position of company CEO, and replaced him with James B. Perry. Perry is respected throughout the industry for his ability to turn around struggling casinos. It also restructured the company's overwhelming debt burden, reducing interest payments by over $100 million per year, and providing a $500 million credit line.

Since the restructuring, the Trump company has begun to invest heavily in its casinos, spending $32 million to renovate rooms and build new glitzy attractions. It will also build a new tower in the 1,2500- room Trump Tal Mahal in order to accommodate more heavy- spending overnight casino visitors. The company also hopes that the renovations will attract a more affluent clientele, including high rollers.

CEO Perry said that the new attractions are sure to enhance the casino's business. "Lounge bands and decor items were lost [before the bankruptcy], when those are the things that make it a fun and exciting place to be. There was no lounge to sit in, no fun places to go."

"We really see the difference," said Jane Healfer, who was visiting the casinos of Atlantic City from New Jersey City with her husband Rob. "We were here a few years ago, and to be honest it was really kind of on the dirty side."

Many Trump customers that had fled the chain for neighboring casinos like the Borgota Hotel Casino & Spa are slowly making their way back.

"I love the Don," said 23 year- old Buffalo resident Jim Templer. "I watch the Apprentice like it's my job, and I'm glad to see his casinos getting back into the game." Casino industry experts applauded the Trump company makeover, but cautioned that it will take about five years to see a real payoff.