Patrons of Donald J. Trump's gambling halls probably won't notice, but his casino empire has entered bankruptcy proceedings after months of negotiations with bondholders over a crushing $1.8-billion debt.
Trump Hotels & Casino Resorts Inc. -- mainly consisting of three Atlantic City, N.J., properties and a riverboat casino in Indiana -- and related operations sought a Chapter 11 restructuring Sunday after reaching agreement with most of its creditors on a new financial structure.
Trump's stake would be slashed to 27% from 47%, even after he plowed $72 million into the new operation. Other common shareholders would be mostly wiped out, and bondholders would control about two-thirds of the equity in the reorganized company under the proposed restructuring plan, which is subject to U.S. Bankruptcy Court approval.
The bonds-for-equity swap would reduce annual interest costs by about $100 million a year. And Trump said the restructured company would have the financial flexibility to add a new hotel tower to the Taj Mahal, his largest Atlantic City casino, and renovate the others.