Many Maryland readers have taken the short road trip to Atlantic City. For decades, the area was one of the few places where legal gambling was available, and the casinos along the boardwalk drew many thousands of visitors each year. Now, Trump Casinos joins other businesses in Chapter 11 as the gambling market expands and the company’s customer base finds alternative venues in which to place their bets.
In the recent filing, Trump Casinos has asked the court to approve a number of motions that would help the two casinos continue to operate. Those motions include permission to pay vendors, continue existing player reward programs and process payroll. The court has not yet addressed the case, but similar motions are commonly approved.
Trump Casinos has stated that unless the casinos can come up with methods that would significantly cut costs, the Taj Mahal will be forced to close by Nov. 13. The two casinos have struggled in the wake of a declining gaming market in the greater area. Where Atlantic City once cornered the market on gambling, options are now available in many nearby states, including Maryland. In addition, the area sustained serious damage during Superstorm Sandy, and has a $14 million business interruption claim pending with their insurance carrier.
As Trump Casinos moves through the bankruptcy process, the casinos included within the recent filing will have the chance to restructure and emerge with a stronger financial foundation. The company is not unfamiliar with the benefits of bankruptcy protection, as three of their businesses in Chapter 11 have emerged successfully. There is reason to believe that Maryland residents may continue to have access to what many have come to treasure as an exciting weekend getaway.
Source: The Street, “Trump Casinos Begin Chapter 11 Play a Fourth Time”, Kelsey Butler, Sept. 9, 2014
