Trump Entertainment Resorts Inc, the casino operator named for Donald Trump, filed for bankruptcy protection on Tuesday as recession and decline in gambling revenues have hurt the company.
The Chapter 11 filing marks the third plunge into bankruptcy for the company, which was created out of a restructuring in 2005. Trump Entertainment owns and operates three casino hotels in hard-hit Atlantic City, New Jersey, including the Trump Taj Mahal, Trump Plaza and Trump Marina. The company did not request debtor-in-possession financing to operate during its restructuring and said it intends to continue to operate as normal.
"This filing will result in no immediate change in our daily operations, and we expect to make no changes regarding our operating structure or philosophy," Trump Chief Executive Mark Juliano said in a statement.
Nine affiliates of the casino operator including Trump Plaza Associates, Trump Plaza Associates, Trump Marina Associates and Trump Taj Mahal Associates simultaneously sought protection, according to filing.
Trump had assets of about $2.1 billion and total debts of $1.74 billion on December 31, 2008. The company, eager to conserve cash, missed a $53.1 million bond interest payment due on December 1 as a sharp downturn in consumer spending hit casino revenue, prompting bondholders to push for bankruptcy.
The filing comes days after the casino operator’s namesake founder said he would resign from the board over disagreements with bondholders who wanted the company to file for bankruptcy. Friday’s statement did not say when Trump’s resignation would be offered or take effect. His daughter Ivanka Trump is also set to reign. .
Trump, a very public and flamboyant figure in an industry filled with colorful, headstrong executives, said the company represents less than 1 percent of his net worth, and that "my investment in it is worthless to me now."
Source: Reuters
