Trump casinos file for Chapter 11 for third time

ATLANTIC CITY — The three Atlantic City casinos once run by Donald Trump filed for Chapter 11 bankruptcy protection on Tuesday — for the third time.

Trump Entertainment Resorts made the filing in U.S. Bankruptcy Court in Camden, N.J., four days after the real estate mogul whose name remains on the company and its three seaside gambling resorts resigned as chairman of its board.

Trump was frustrated that bondholders and their allies on the board rebuffed his offer to buy the company and take it private.

“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 on Tuesday.

He acknowledged being sad over the end of a venture that was so publicly and relentlessly associated with his name and image. Yet he said 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,” said Trump, who still holds 28 percent of the company’s stock.

The company has $2.06 billion in assets and more than $1.74 billion in liabilities, according to its court filing.

All three of the company’s casinos will continue to operate as usual during the bankruptcy proceedings.

Filing three times for Chapter 11 protection is uncommon in American business, according to Harlan Platt, a professor and bankruptcy expert at Northeastern University in Boston, who has followed Trump’s casino bankruptcies for decades.

“Chapter 33! Wow! That’s rare,” he quipped.

“Mr. Trump has a way of doing business which was perfectly aligned with American capitalism over the last 20 years, but will probably be misaligned in the future,” Platt said. “He has lots of leverage and a tendency to make very bold bets, ” Platt said.

At least 10 other companies — including an airline, steel makers and several retailers — have filed for bankruptcy three times, according to an Associated Press review.

The casino company’s current incarnation, Trump Entertainment Resorts, was borne of a prior trip through bankruptcy that ended in 2005.

Debt that was still left over from that restructuring was exacerbated by the economic meltdown and competition from slots parlors in Pennsylvania and New York that have been hammering Atlantic City for more than two years.

“It was the only option left to us,” said Mark Juliano, the company’s CEO. “We will work to get it restructured and come out of this with an appropriate amount of leverage.”

Top creditors listed in the filing include U.S. Bank, the trustee for bondholders who are owed $1.3 billion; Bovis Lend Lease of Princeton, N.J., which managed construction of the $255 million Chairman Tower that opened last fall at the Trump Taj Mahal Casino Resort, owed $7.4 million; Thermal Energy Ltd. I, a subsidiary of Pepco Energy Services that designed and operates heating and cooling systems at the Taj Mahal, owed $1.8 million; and the Hess Corp., owed $1.3 million.

Other claimants include insurers, slot machine manufacturers, a food service company, a linen supplier, a limousine company and a billboard company.

Trump Entertainment’s three casinos are the Taj Mahal, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino, which is to be sold this spring to a company led by Richard Fields, a former protege of Donald Trump.

In the meantime, Juliano stressed that all three Trump casinos will be open for business as usual, and customer loyalty programs will remain in effect.

“This is a restructuring, not a liquidation,” he said. “Vendors and employees will be paid, customers will have winning bets paid.”

ad-high_impact_4
Business
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
ad-infeed_1
ads_infeed_2
Local Spotlight
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like