[clevfan]

Trump Casino Empire Files for Bankruptcy


NEW YORK - Donald J. Trump's casino empire has filed for bankruptcy protection after months of negotiations with bondholders over restructuring a crushing debt.

Trump Hotels & Casino Resorts Inc. and numerous related operations filed for protection from its creditors under Chapter 11 of the bankruptcy code on Sunday in U.S. Bankruptcy Court in Camden, N.J.

The filings list $1.3 billion in debt.

The filings come even as Trump, a well-known real estate developer, has enjoyed considerable ratings success with the television show "The Apprentice" in which he fires aspiring associates each week.

Last month, Trump announced a bankruptcy reorganization plan under which he would give bondholders a stake but remain as chairman and CEO.

The move comes as Trump Hotels fights to survive amid debt that has hampered Trump's efforts to maintain and expand his Trump Marina, Trump Taj Mahal and Trump Plaza casinos in Atlantic City. The properties have been hurt badly by new competition from the Borgata Hotel Casino & Spa and other casinos.

It is the second time Trump casinos filed for bankruptcy court protection. In 1992, Trump Taj Mahal, Trump Castle and Trump Plaza ended up in Chapter 11, burdened by more than $1 billion in debt and hurt by the 1990-91 recession.

Trump later regained control of the casinos, but high interest payments ate away at the company's bottom line, making it impossible to finance capital improvements at a time when Atlantic City competitors were luring gamblers away.