Donald Trump's casino businesses in Atlantic City filed for corporate bankruptcy multiple times. While Trump never filed for personal bankruptcy, the companies he founded to own and operate the casinos, such as Trump Hotels & Casino Resorts and Trump Entertainment Resorts, sought Chapter 11 bankruptcy protection to restructure their massive debts.
The major bankruptcies related to his casino empire include:
- Trump Taj Mahal (1991): Opened in 1990 at a cost of nearly $1 billion, the casino defaulted on its interest payments within a year and filed for bankruptcy. Trump ceded a 50% stake to bondholders in exchange for lower interest rates.
- Trump Castle (1992): This casino filed for Chapter 11 soon after the Taj Mahal, leading Trump to give up half his equity in the property.
- Trump Plaza Hotel and Casino (1992): This property also entered bankruptcy in 1992, at which point Trump gave up a 49% stake to lenders.
- Trump Hotels & Casino Resorts (2004): The holding company for his three casinos filed for bankruptcy to restructure about $1.8 billion in debt. Trump's majority ownership was reduced from 56% to about 27%.
- Trump Entertainment Resorts (2009 and 2014): The company filed for bankruptcy again in 2009 during the Great Recession, resulting in Trump's complete departure from his role as chairman and a reduction of his stake to no more than 10%. Another filing occurred in 2014, leading to the closure of the Trump Plaza. The last remaining property, the Trump Taj Mahal, closed in 2016 after being acquired by Carl Icahn.
