Tuesday, February 17, 2009

Atlantic City's Trump Entertainment Files For Bankruptcy

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Trump Entertainment Resorts Inc., the owner of three Atlantic City casinos, filed for bankruptcy this morning. According to the filing, the casino company anticipated the bondholders would force the company into bankruptcy if the casino company hadn't filed for bankruptcy.

According to the filing, the casino company listed assets of $2.1 billion and debt of $1.7 billion as of December 31, 2008.

Atlantic City's gaming revenues have suffered largely from the economy and the opening of slot parlors in neighboring Pennsylvania. Gaming revenues in Atlantic City fell 7.6 percent last year.

Trump reportedly controlled about 28 percent of Trump Entertainment’s stock and quit the company's board of directors last Friday.

Trump Entertainment's 8.5 percent bond notes due June 2015 traded at 14 cents on the dollar earlier this week, according to Trace, the bond-pricing system of the Financial Industry Regulatory Authority.

The three Trump casinos went through bankruptcy in the 1990's and once again in the last four years.