Young Md. investor wants to become casino player

ATLANTIC CITY, N.J. — A Maryland private equity fund whose chief investment officer is barely old enough to roll the dice or have a legal drink wants to become a player in the Atlantic City casino industry.

New Century Investment says it has $500 million to invest and is willing to partner with either Donald Trump or the bondholders Trump is struggling against in bankruptcy court.

The company, including 21-year-old Artin Afsharjavan, whose businesses include a Persian restaurant in Bethesda, Md., wants to buy a controlling interest in Trump Entertainment Resorts’ three casinos.

Failing that, New Century is looking elsewhere in Atlantic City, which has no shortage of distressed gambling halls.

“We are interested in the Atlantic City market,” said Alex Barba, a spokesman for New Century. “We’re buyers; we want people to bring their deals to us, and know that we are players here.”

Afsharjavan said in a prepared statement that the company has been following Trump Entertainment since the end of last year.

“Now is the time for us to make our move,” Afsharjavan said. “We have assembled some of the nation’s top turnaround talent to aid us if we get our way. Our partners are the people who see the true potential of Atlantic City and want it to succeed.”

But New Century has yet to do one important thing.

“Show me the money,” said Mark Juliano, Trump Entertainment Resorts’ CEO.

He said New Century approached Trump Entertainment in February, around when the three casinos filed for Chapter 11 bankruptcy court protection. The firm expressed interest in buying Trump Entertainment but failed to prove it had the funding, Juliano said.

“If they now have a way to let us verify they have the financial wherewithal, we’d be happy to take a look at it,” Juliano said.

Donald Trump, who once owned the company that bears his name, and bondholders who stand to lose their $1.25 billion investment, are battling to buy the company out of bankruptcy court. Barba said New Century is willing to partner with either side.

He would not specify how much of the firm’s $500 million it is willing to invest in Trump Entertainment other than to say “our best offer is better than anyone else’s.”

Bondholders have offered $175 million.

Donald Trump, his daughter Ivanka Trump and Dallas-based Beal Bank have together offered $100 million.

Donald Trump did not immediately return a call seeking comment Wednesday, but Juliano said Trump Entertainment has not received a specific offer from New Century.

In addition to Afsharjavan, New Century’s partners include Richard Feller, who helped turn around National Semiconductor in the early 1990s, and Sean Rankin. It also lists Paul Gustavson, who helped with the National Semiconductor turnaround, and Shane Cragun as “turnaround specialists in residence.”

If a deal can’t be reached with either side to buy Trump Entertainment, New Century is prepared to look at Resorts Atlantic City and its sister property, the Atlantic City Hilton Casino Resort, Barba said.

Both have been pummeled by the recession and the fierce competition from slots parlors in Pennsylvania and New York that have drawn away many of Atlantic City’s best customers.

Resorts is trying to work out a deal to hand ownership to its lenders. The Hilton missed its July mortgage payment and is trying to renegotiate a deal with its lenders.