Trump Entertainment Resorts has
filed under Chapter 11, which is the
third time the casino operator has
sought bankruptcy protection.
The filing had been anticipated since
the company missed a $53.1 bond
payment due in December.
Both Donald Trump and his daughter
Ivanka tendered their resignations
from the company's Board of Directors
just days before the filing.
Trump operates 3 casino properties in
Atlantic City NJ, the Trump Taj Mahal,
Trump Plaza and Trump Marina.
Atlantic City has been hit hard by
both the poor economy and increased
competition from Pennsylvania.
Trump isn't the only operator having trouble
in AC. Atlantic City gambling revenue was
down an average of 7.6% in 2008, with
December's revenue down almost 19%.
Casino operators, including MGM Mirage
and Pinnacle, have postponed four major
casino construction projects in the city.
The Tropicana is about to be sold in
bankruptcy court, and both Resorts and
the Atlantic City Hilton are trying to
restructure debt agreements with lenders.
2/24/2009
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