Trump Entertainment Resorts Inc filed for Chapter 11 bankruptcy protection

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Tuesday February 17, 2009

NEW YORK (Reuters) - Casino operator Trump Entertainment Resorts Inc filed for Chapter 11 bankruptcy protection on Tuesday, according to court documents, wiped out by the recession and a mountain of debt.

The move was widely expected, coming days after the casino operator's namesake tycoon, Chairman and founder Donald Trump, walked away from the company.

The casino operator had assets of about $2.1 billion and total debts of about $1.74 billion on December 31, 2008, it said in its filing with the U.S. Bankruptcy Court for the District of New Jersey.

The company missed a $53.1 million bond interest payment due on December 1 as a sharp downturn in consumer spending hit casino revenues, prompting bondholders to push for bankruptcy.

Trump, the most flamboyant player 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."

No stranger to bankruptcy, Trump Entertainment Resort Holdings went into chapter 11 in 2004, from which it emerged a year later with Trump having relinquished the position of CEO.

Friday's statement did not say when Trump's resignation would be offered or take effect. His daughter Ivanka Trump is also resigning, it said.

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 the filing.

(Reporting by Christopher Kaufman in New York and Ajay Kamalakaran in Bangalore, editing by Dave Zimmerman)

Some people just can't face failure!

17th February 2009 By Mail Foreign Service Now even Donald Trump has fallen victim to the credit crunch. Trump Entertainment Resorts Inc., Mr Trump's casino group, filed for Chapter 11 bankruptcy protection today, court documents show. The company missed a $53.1 million bond interest payment due on December 1 as a sharp downturn in consumer spending hit casino revenues. Mr Trump himself resigned from the board on Friday night in protest over the bankruptcy filing, which he denied was necessary. His daughter Ivanka also resigned from the board in protest over the bankruptcy filing. 'Some time ago, I made an offer to buy the company in hopes that I might be able to reverse its fortunes,' Mr Trump, who owns 28 per cent of the company's stock, said. 'But the bondholders turned me down,' he added. 'Now I will study and watch as the horrible and outrageous fees being paid to lawyers and consultants will suck the blood from the company... 'These are very tough times in Atlantic City. Almost every company is in serious financial trouble. 'Despite this, I will be watching closely and at some point in the future I hope to return.'

Donald Trump's fury as his casino group files for Chapter 11 bankruptcy protection | Mail Online