ATLANTIC CITY, N.J. – Trump Entertainment Resorts filed for bankruptcy Tuesday and threatened to shut down the Taj Mahal Casino Resort in November.
The company owns Trump Plaza, which is closing in a week, and the Taj Mahal, which has been experiencing cash-flow problems and had been trying to stave off a default with its lenders.
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It’s the fourth such filing for the struggling casino company or its corporate predecessors.
The company filed in U.S. Bankruptcy Court in Wilmington, Delaware, saying it has liabilities of between $100 million and $500 million, and assets of no more than $50,000.
It said cost-cutting negotiations with the main casino workers’ union have stalled, and that the company is preparing notices warning employees the Taj Mahal may close on Nov. 13.
“Absent expense reductions, particularly concessions from their unions, the Debtors expect that the Taj Mahal will close on or shortly after November 13, 2014 and that all operating units will be terminated between November 13, 2014 and November 27, 2014,” the company wrote in its bankruptcy filing.
Donald Trump owns a 10 percent stake in the firm, but no longer controls it. He is suing the company to remove his name from the properties, which he says have fallen into disrepair and do not meet agreed-upon standards of quality and luxury.
The company last went through bankruptcy in 2009.
Three other Atlantic City casinos have closed this year, as the industry struggles with competition in nearby states.
Atlantic City began the year with 12 casinos, but could end it with seven if the Taj Mahal closes. So far this year, the Atlantic Club, Showboat and Revel have gone out of business, with Trump Plaza closing next Tuesday.
If the Taj Mahal closes, Trump Entertainment would have no remaining properties and would presumably go out of business.
Wayne Parry can be reached at http://twitter.com/WayneParryAC
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