Two Trump Casinos File For Chapter 11 Bankruptcy
ATLANTIC CITY, N.J. (AP) _ Two of Donald Trump’s financially troubled casinos filed for bankruptcy to restructure $538 million in debt.
Trump Castle Casino Resort and Trump Plaza Hotel and Casino filed for protection from creditors Monday in pre-packaged Chapter 11 bankruptcies, already approved by at least two-thirds of each casino’s bondholders.
The advance creditor approval averts a long and costly stint in U.S. Bankruptcy Court.
Under the Castle plan, Trump would give bondholders half the casino’s equity in exchange for lower interest rates on $288 million in bonds.
The Trump Plaza plan restructures $250 million in debt but doesn’t relinquish any equity because the casino isn’t in default. Trump has missed two interest payments to Castle bondholders.
Trump’s other Atlantic City casino, the Trump Taj Mahal, emerged from bankruptcy court last year with a prepackaged plan similar to that proposed for Trump Castle.
Trump officials didn’t return several telephone calls seeking comment.