http://money.cnn.com/2004/03/31/news/midcaps/trump/
NEW YORK (CNN/Money) - He may have a hit TV show, a new book and a stable of high-profile real estate, but "The Donald's" Trump Hotels & Casino Resorts Inc. may be on shaky ground.
In a statement accompanying Trump Hotels' annual regulatory filing, the company's auditors, Ernst & Young, said there are conditions that "raise substantial doubt about the company's ability to continue as a going concern."
Auditors' statements in annual filings usually are standard statements; it's rare for an auditing firm to question the client's ability to continue as a company.
Ernst & Young cited increased competition, continuing operating losses and a capital deficit at Trump Hotels & Casino (DJT: Research, Estimates).
In its filing, Trump Hotels singled out the new 2,000-room Borgata hotel in Atlantic City, N. J., a venture owned by Boyd Gaming and MGM Mirage, as having a negative impact on its business.
Trump Hotels also said its $1.8 billion in debt and accompanying interest payments were prohibiting it from reinvesting in its properties, and it has been looking at ways to restructure.
The company said its options include asset sales, in-court restructuring of debt (read bankruptcy filing), or finding new equity investments.
Trump Hotels said a unit of Credit Suisse First Boston has proposed a $400 million equity investment in the company.
Ernst & Young noted that "absent the successful completion of one of these alternatives, the company's operating results will increasingly become uncertain."
Donald Trump has seen a revival with his hit TV show "The Apprentice," which recently aired an episode in the Trump Hotel & Casino in Atlantic City, and his subsequent book "Trump: How to Get Rich."
NEW YORK (CNN/Money) - He may have a hit TV show, a new book and a stable of high-profile real estate, but "The Donald's" Trump Hotels & Casino Resorts Inc. may be on shaky ground.
In a statement accompanying Trump Hotels' annual regulatory filing, the company's auditors, Ernst & Young, said there are conditions that "raise substantial doubt about the company's ability to continue as a going concern."
Auditors' statements in annual filings usually are standard statements; it's rare for an auditing firm to question the client's ability to continue as a company.
Ernst & Young cited increased competition, continuing operating losses and a capital deficit at Trump Hotels & Casino (DJT: Research, Estimates).
In its filing, Trump Hotels singled out the new 2,000-room Borgata hotel in Atlantic City, N. J., a venture owned by Boyd Gaming and MGM Mirage, as having a negative impact on its business.
Trump Hotels also said its $1.8 billion in debt and accompanying interest payments were prohibiting it from reinvesting in its properties, and it has been looking at ways to restructure.
The company said its options include asset sales, in-court restructuring of debt (read bankruptcy filing), or finding new equity investments.
Trump Hotels said a unit of Credit Suisse First Boston has proposed a $400 million equity investment in the company.
Ernst & Young noted that "absent the successful completion of one of these alternatives, the company's operating results will increasingly become uncertain."
Donald Trump has seen a revival with his hit TV show "The Apprentice," which recently aired an episode in the Trump Hotel & Casino in Atlantic City, and his subsequent book "Trump: How to Get Rich."
