Jump to Navigation

Another New Jersey casino considers filing for Chapter 11

Many people have lost their means to discretionary income due to the recession, which equates to fewer people spending money on luxury items and gambling. The downturn of the economy has had a major impact on the New Jersey gambling scene, causing two casinos to file for Chapter 11 bankruptcy protection already this year. A third may be soon to follow in an attempt to restructure and become more attractive to a new buyer.

Trump Entertainment resorts -- which controls Trump Plaza and Trump Taj Mahal -- may be filing for bankruptcy due to its dropping revenue and mounting debt. Based on a recent filing with state regulators, the Trump subsidiary was more than $285 million in debt. The Trump Taj Mahal told regulators that it will have to indefinitely postpone payments on its property taxes. A casino analyst for Fitch Rating reported that the subsidiary went into forbearance because it was unable to continue making interest payments.

A quarterly report for the Trump Taj Mahal indicated that the company may be restructuring in the near future. If the property does not begin to a see a surge in business, it will be difficult to stay in operation. The Trump Plaza is expected to close in the middle of September, but the Taj Mahal is projected to stay open because it is still turning a profit.

According to the analyst, filing for bankruptcy is not a definite indication that a business is going to close. It can be seen as an opportunity to restructure and become more organized. This could lead to the New Jersey business coming out of filing for Chapter 11 even stronger than it was initially. He also indicated that this process may allow the company to get rid of some of the debt and have the ability to cancel unprofitable contracts and renegotiate others. Businesses who are confronting financial difficulties can turn to Chapter 11 as a solution to help them get back on their feet, become better organized and emerge in a better position for the future.

Source: pressofatlanticcity.com, "Could Trump Taj be the next casino to go bankrupt?", Reuben Kramer, Sept. 4, 2014

No Comments

Leave a comment
Comment Information

Contact Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Subscribe to This Blog's Feed Visit Our
Bankruptcy Law Website

Office Location

Law Office of Robert Braverman, LLC

South Jersey
1060 North Kings Highway, Suite 333
Cherry Hill, NJ 08034
Phone: 856-254-2196 
Toll Free: 800-759-0767
Fax: 856-414-1230
Map & Directions

Willingboro Area Office
Law Office of Robert Braverman, LLC

1848 Burlington Mount Holly Rd (Route 541)
Mount Holly, NJ 08060
Phone: 856-254-2196
Toll Free: 800-759-0767
Willingboro Area Office

Center City, Philadelphia
15th Floor
1515 Market Street
Philadelphia, PA 19102
Map & Directions

Northeast Philadelphia
7909 Bustleton Avenue
Philadelphia, PA 19152
Map & Directions

FindLaw Network