Latest News 2009 February Trump Casino Group Files for Bankruptcy for Third Time

Trump Casino Group Files for Bankruptcy for Third Time

Yesterday, three Atlantic City casinos that were once run by Donald Trump filed for Chapter 11 bankruptcy protection.  This is the third time that the casinos have filed for bankruptcy. 

The casinos, run by Trump Entertainment Resorts, filed for bankruptcy in the U.S. Bankruptcy Court, which is located in Camden, New Jersey.  Four days after the group filed for bankruptcy, Donald Trump stepped down as chairman of the board for the three gambling resorts.  Trump claimed that he was frustrated with the bond holders and that the board refused to accept his offer of buying the company and operate it privately instead of publicly. 

According  to the Associated Press, Trump said , "Other than the fact that it has my name on it -- which I'm not thrilled about -- I have nothing to do with the company."   Trump still holds 28% of the company's stock at this time. 

Trump Entertainment Resorts listed in its' court filing that it has $2.06 billion in assets and more than $1.74 in liabilities.  The company said that all three casinos will continue to operate separately throughout the duration of the Chapter 11 bankruptcy proceedings.  Trump Entertainment Resorts was formed after the casinos prior bankruptcy term ended in 2005.  
 
The CEO of the company, Mark Juliano, claims that, "It was the only option left to us... we will work to get it restructured and come out of this with an appropriate amount of leverage."

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Categories: Bankruptcy Basics