Casino company files for bankruptcy
17th February, 2009
It has emerged that Trump Entertainment Resorts Inc, founded by Donald Trump, has been forced to file for bankruptcy. The casino company petitioned for Chapter 11 bankruptcy after annual gambling revenue in Atlantic City, New Jersey dropped by a record 7.6% in 2008.
This is not the first time that a Trump affiliate has been in this situation.
About three and a half years ago Trump Entertainment emerged from bankruptcy. Its predecessor, Trump Hotels & Casino Resorts Inc. had been losing money for nine years due to high interest payments which arguably prevented the company from expanding its casinos. In November 2004 the company sought court protection.
The three casino resorts also petitioned for Chapter 11 bankruptcy in the 1990s.
In August 2005, Trump Entertainment’s market value was $842 million. Now, its market value is estimated at $7.3 million.
Trump Entertainment has yet to comment on the matter.
By Annabel
