You’re filing for Chapter 11.
That’s the message Trump Entertainment Resorts bondholders had for Donald Trump as his casino company filed for bankruptcy protection today.
The filing came after Trump Entertainment’s board met last night to explore its options, including the Atlantic City, NJ, company’s third trip to bankruptcy court, after it failed to reach an agreement with its debt holders.
The Chapter 11 filing comes after Trump on Friday stepped down as chairman of the casino group amid a fight with bondholders over how best to save the cash-strapped company. His daughter, Ivanka, also stepped down from the board.
Trump Entertainment is 28 percent owned by “the Donald,” best known these days for his NBC reality series “The Apprentice,” but the company operates separately from his real-estate holdings.
“Some time ago, I made an offer to buy the company in the hopes that I might be able to reverse its fortunes but the bondholders turned me down,” Trump said in a statement to The Wall Street Journal.
The filing came after Trump Entertainment asked for another waiver on a $53 million bond payment that was due at the end of last year.
The current waiver, one of several since missing the original deadline, was set to expire today, and the creditors, which include hedge funds Contrarian Capital Management and Avenue Capital, played hardball and late last week informed the company they would force it into an involuntary bankruptcy.
News of the pending Chapter 11 filing was first reported on the Journal’s Web site.
Trump Entertainment operates gambling casinos along Atlantic City’s boardwalk, including the Trump Taj Mahal Casino Resort and the Trump Plaza Hotel & Casino. The company also runs the Trump Marina Hotel Casino in Atlantic City’s Marina District, but is in the process of selling it.
The company is laden with approximately $1.75 billion in debt, including $1.25 billion in bonds and $500 million in credit facilities and other bank loans, according to company filings.