Trump Entertainment Resort Files Chapter 11 Bankruptcy

by San Antonio Attorney

Trump Entertainment Resorts Inc. filed for Chapter 11 bankruptcy on Tuesday. It operates Taj Mahal Casino Resort and Trump Plaza.

Atlantic City has the second biggest gambling industry in the U.S., after Las Vegas.  The industry has been taken over by fresh rivals from the north-east, with revenue declining almost fifty percent from $5.2 billion in 2006, the city’s biggest revenue ever. There are at least 40 new casinos in nearby New York, Maryland, Delaware and Pennsylvania.

More than 8,300 workers are going to lose their jobs with three casinos closing in Atlantic City in less than a month. These casinos are Showboat, Revel Casino, and Trump Plaza Hotel and Casino.

Based on documents filed with the Delaware bankruptcy court, Trump Taj Mahal Casino will also stop its operations in November if the company is unable to lower its expenses and work out a deal with its union.

This is the third time that Trump Entertainment has sought for bankruptcy protection. It employed approximately 2,800 full-time workers and around 1,800 temporary workers.

The company stated $100 million in assets and $500 million in liabilities. Trump Entertainment’s largest creditor is Carl Icahn-owned funds, which it owes $286 million.

Donald Trump filed a case against Trump Entertainment in August to have his name removed from both gambling establishments, saying that the casinos are in “an utter state of disrepair.” Trump was the founder of the two casinos, but his stake in the business was eliminated in 2009 when the company filed for bankruptcy. He came out from the reorganization the year after with a 10 percent share and the properties were allowed to carry his name.

Trump is a property tycoon who has an empire that spans residential real estate, resorts and hotels, such as the Trump World Tower located in New York City.

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