Tribe buys out Trump's share of casino

updated 10:34 a.m. ET Dec. 31, 2004

COACHELLA, Calif. - The Twenty Nine Palms Band of Mission Indians is buying Donald Trump out of its casino.

The tribe has announced an early $6 million buyout of its partnership with Trump Hotels and Casino Resorts Inc. The initial $11 million deal two years ago renamed the tribe’s Spotlight 29 Casino the Trump 29 Casino. Daily operations were turned over to Trump’s company as part of a $60 million expansion.

The buyout announcement comes after Trump Hotels filed for bankruptcy last month. A bankruptcy judge this month signed off on a $100 million loan that will keep Trump’s casinos in New Jersey and Indiana open while the bankruptcy case is resolved.

The tribe’s contract with Trump’s Atlantic City, N.J. corporation would have expired in 2007, but included an early buyout option beginning in April 2005.

“We are proud of what we have done together with the tribe, starting with the financing and development of the property and culminating in the record-breaking results,” Trump said in a statement this week. “It’s now time for the tribe to assume management responsibility.”

A bankruptcy judge handling the Chapter 11 reorganization of Trump Hotels and Casino Resorts has set a Jan. 21 hearing. The buyout is not final until a bankruptcy judge approves it.

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