Trump Entertainment Resorts Inc. decided yesterday to terminate its purchase agreement with Coastal Development L.L.C., of New York, to acquire the Trump Marina Casino in Atlantic City.
The deadline to complete the deal was Thursday. When that date came and went, the two sides said they would continue talking.
That apparently changed yesterday.
"We are disappointed with Trump Entertainment Resort Inc.'s letter today to terminate our agreement to acquire the Trump Marina Hotel and Casino," said a statement released by Coastal Marina L.L.C., an affiliate of Coastal Development, about 4 p.m. "It had been our hope to continue a dialogue with Trump Entertainment about modifying the agreement to reflect current economic realities, but regrettably they chose instead to send this letter. We remain committed to Atlantic City as the perfect market for a Margaritaville project."
Trump Entertainment's chief executive officer, Mark Juliano, said he filed notice with the Securities and Exchange Commission late yesterday stating that talks had ended.
"We did terminate the purchase agreement with Coastal for their failure to perform," he said, adding that included failure to secure financing and get proper licensing. But his interpretation of what transpired was markedly different from Coastal's.
Juliano said his firm was trying to get an extension for the purchase agreement when it was served with a notice yesterday morning from Coastal saying that Trump Entertainment was in breach of contract. "We strongly refuted the charges," he said.
As for what will become of Trump Marina, Juliano said: "We're going to continue to explore strategic alternatives, but for the time-being, it's being run as business as usual . . . and we'll see what the summer brings."
"I wish it would have worked out, but it will eventually with someone."
Coastal Marina announced its intent to purchase Trump Marina in May 2008.