Drea Knufken
The Wall Street Journal reports on the Trump bankruptcy, which will be Trump casinos’ third:
Trump Entertainment Resorts Inc., Donald Trump’s casino group, is expected to file Tuesday morning for protection from its creditors under Chapter 11 of the Bankruptcy Code, said several people familiar with the matter.
The company’s board authorized the filing late Monday night, said these people, after deciding that the Atlantic City, N.J., casino operator would otherwise be forced into bankruptcy involuntarily by creditors.
Such a filing would mark the third appearance in bankruptcy court for Trump Entertainment, which most recently emerged from bankruptcy proceedings in 2005. Any filing would likely be in Camden, N.J., where the company, which had $960 million in sales last year, entered its previous petition.
The planned board meeting follows months of negotiations between the real-estate mogul and his casino’s bondholders, who had given the company several waivers to delay an interest payment due late last year. Late last week, the bondholders told the company they would seek an involuntary bankruptcy proceeding to force the company into Chapter 11. Bondholders and their legal advisers had all of the paperwork ready for an involuntary filing.
Gawker points out that the Trump bankruptcy comes about two weeks before the second season premiere of Celebrity Apprentice, where Trump can live out his power trip in peace.
