Trump casino files for Chapter 11

Mr Trump has resisted plans to force the firm into Chapter 11 bankruptcy

Trump Entertainment Resorts, the casino group founded by Donald Trump, has filed for bankruptcy protection in the face of multi-billion dollar debts.

Also hit by falling revenues, the petition for Chapter 11 bankruptcy protection said the firm had debts of $1.7bn (£1.2bn) as of 31 December 2008.

Trump Entertainment missed a $53m interest payment due on 1 December.

Donald Trump announced his resignation from the firm's board last week, due to disagreement with bondholders.

Mr Trump said in a statement that he was leaving amid "internal turmoil" that was being "compounded by dramatically deteriorating revenues".

He said that the company represented less than 1% of his net worth, and that "my investment in it is worthless to me now".

According to reports, Mr Trump had resisted bondholders' plans to force the firm into Chapter 11.

Previous bankruptcies

Chapter 11 protection gives US businesses time to rearrange their finances while continuing to trade, protected from their creditors.

Trump Hotels & Casino Resorts, the predecessor of Trump Entertainment Resorts, filed for bankruptcy in November 2004, trying to restructure $1.8bn in debt.

A month earlier, Mr Trump struck a deal with bondholders to cut his stake in the firm, but preserve his role as chairman and chief executive.

The company emerged from bankruptcy in 2005.

In 1992, Trump's Atlantic City casinos filed for Chapter 11 after buckling under the weight of $1bn in debt. He later regained control of those properties.