Luck Runs Out for Trump Casinos

Trump's luck has run out -- again.

Donald Trump's Atlantic City, N.J.-based casino group filed for Chapter 11 bankruptcy protection on Tuesday after the cash-strapped company racked up $1.74 billion debt as of Dec. 31, 2008, Reuters reported.

The filing marked the third time in bankruptcy court for Trump Entertainment, and the company's board authorized the move after they determined they would be forced into bankrupt by creditors, the Wall Street Journal reported.

Trump engaged in a showdown with board members after he and daughter Ivanka Trump abruptly quit from the company's board of director's last Friday. Bondholders reportedly drew Trump's ire when they bristled at the real estate mogul's offer to buy the beleaguered company.

"Other than the fact that it has my name on it — which I'm not thrilled about — I have nothing to do with the company," Trump told the Associated Press Tuesday morning.

Trump told the AP that the  company "represents substantially less than 1 percent of my net worth, and has for some time."

"If I can't manage something, it's not for me," Trump said.

Nine affiliate casino operators including Trump Plaza Associates, Trump Marina Associates and Trump Taj Mahal Associates also sought bankruptcy protection. 

The company skipped a biannual $53.1 million payment to bond holders that had been due last Dec. 1, and started negotiating with them on a refinancing of $1.25 billion in debt. Those talks had been extended four times before ending with Tuesday's bankruptcy filing.

Trump acknowledged the company has limited rights to use his name, but hinted he may seek legal action to force them to stop using it.



Copyright AP - Associated Press
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