Analysts speculated that Trump Hotels bought back the bonds with proceeds from the loan the company said its chairman repaid. Beyond that, the company could struggle to make payments on the notes, as its Trump Indiana riverboat casino loses gamblers to competing casinos in Illinois.
Cash flow is earnings before interest, taxes, depreciation and amortization.
Indiana's gambling laws require the Trump Indiana to cruise on Lake Michigan. That puts Trump Indiana at a disadvantage, the company said, to neighboring riverboat casinos in Illinois, which remain dockside so gamblers can board or leave whenever they want. The terms of Trump's bonds require that the Trump Holdings notes are mainly paid off with cash flow from Trump Indiana. Donald Trump said he is getting more involved in the casino company's operations and expects results to improve. That means good things for the casinos.