George S. May Business Blog

Trump Entertainment Resorts Inc., Donald Trump file for Chapter 11 bankruptcy once again

Trump Entertainment Resorts Inc. has, once again, now for a third time, filed for bankruptcy.

Trump Entertainment Resorts Inc. filed today for Chapter 11 protection in the U.S. Bankruptcy Court in New Jersey. Tuesday was the company’s deadline to reach a new deal with bond holders to restructure $1.25 billion in debt. Prior to filing, Trump Entertainment Resorts Inc. tried four times to negotiate a deal to give the company some financial breathing room. As of Dec. 31, the Trump Entertainment had total assets of $2.06 billion and total debts of $1.74 billion, according to the court papers.

Trump Entertainment Resorts (TRMP) owns and operates three casinos in Atlantic City, N.J. The Trump Taj Mahal Casino and Trump Plaza Hotel and Casino are located on the Atlantic City boardwalk and Trump Marina Hotel Casino is located in the Marina District.

Donald Trump had resigned from the company’s board Friday night, after growing frustrated with bondholders. Trump, a very public figure 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.”

This really comes as no surprise as experts had been looking for a Chapter 11 filing from Trump since it missed the December 1 bond interest payment.

“It had been moving in this direction for two months,” said KeyBanc gaming industry analyst Dennis Forst.

“I think (restructuring) could take a while,” he said. “Obviously, they weren’t able to restructure it with the debt holders in the two months they had.”

This news, as unfortunate as it is for current shareholders, further proves what a bad idea investing in a man as despicable as Donald Trump is. Notorious for filing Chapter 11, ‘the Donald’ once again shows what little regard he has for ‘partners’. In the future I urge investors to remember to stay clear as we the past has proved that when the going gets bad, the Donald gets going.

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