Trump Entertainment Resorts Inc. filed for bankruptcy protection overnight before the casino operator’s bondholders could present an involuntary petition. The Chapter 11 bankruptcy, filed days after founder Donald Trump quit the board and four years after its predecessor company failed, listed assets of $2.1 billion and debt of $1.74 billion as of Dec. 31, according to the filing today in U.S. Bankruptcy Court in Camden, New Jersey.Trump Entertainment, the owner of three casinos in Atlantic City that already have been through bankruptcy twice, missed a $53 million interest payment at the start of December, and a creditor-extended grace period to make the defaulted coupon payment expires today. Gambling revenues in Atlantic City plunged the most on record last year amid the recession and competition from slot machines neighboring states.
“Dialog is continuing” on restructuring the company’s capital structure, Chief Financial Officer John Burke said in a court filing. “The bankruptcy will provide a forum for a prompt and efficient restructuring of the” senior notes. The company asked the court to schedule a hearing for tomorrow to consider a series of requests, including approval to pay “critical” pre-bankruptcy creditors such as suppliers and employees.
