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The filing, made in U.S. Bankruptcy Court in Camden, had been expected for several weeks by gaming analysts due to the company's debt burden and strained cash flow.
It marks the third time that the casino company has filed for Chapter 11 bankruptcy protection. Before the company went public in June 1995, the Trump Taj Mahal filed for Chapter 11 in July 1991, as did the former Trump Castle and Trump Plaza casinos in 1992.
"We are focused on our goal of successfully restructuring our company to reduce our debt in order to strengthen our balance sheet during this difficult economic period," said Mark Juliano, Trump Entertainment chief executive.
"This filing will result in no immediate change in our daily operations, and we expect to make no changes regarding our operating structure or philosophy."
Juliano said the move would have no effect on customers coming to the three Trump casinos in Atlantic City: the Taj Mahal, Trump Plaza and Trump Marina.
The forbearance period was triggered after the company missed a $53 million bond payment on Dec.1, 2008, and the 30-day grace period expired. As part of the forbearance agreement, the company would also try to restructure $1.25 billion in debt.
Trump Entertainment got multiple extensions to keep talks going with its primary lender, Beal Bank of Nevada, and bondholders to delay or prevent a bankruptcy filing. The talks ended late last night.
"We remain focused on operating as efficiently as possible in this strained economic environment," Juliano said.
Today's filing comes just days after Donald J. Trump and his daughter, Ivanka, resigned from the board of Trump Entertainment. Trump, who is chairman of the board, said his decision last Friday to cut ties from the company was over his growing dissatisfaction with its bondholders, who control the company.
Trump was the firm's largest individual shareholder, with a 28 percent equity.
Trump Entertainment has requested, in its filing, court approval to continue to pay its vendors in the normal course of business.
Other casinos in Atlantic City are also fighting for their survival.
Tomorrow, the New Jersey Casino Control Commission will consider a request by Column Financial, the lead lender for Resorts Atlantic City casino, to either foreclose on the property or have the owners surrender title to it without having to go through foreclosure.
Resorts' parent company, Colony Capital L.L.C. of Los Angeles, is trying to fend off a takeover attempt by Column Financial, a subsidiary of Credit Suisse, after failing to make a mortgage payment since October.
A lawyer for Colony said today that Colony's strategy was to convince the commission that Column Financial lacks the state regulatory authority to run a casino-hotel in New Jersey and has no gambling license.
Resorts earlier this week said it plans to set aside $15 million to cover payouts to winning gamblers, payroll and taxes while the two sides battle for control of New Jersey's first casino. Resorts debuted in Atlantic City on May 26, 1978.
The state gambling commission will also hear plans at tomorrow's hearing by the state-appointed trustee and conservator, Gary Stein, on selling the Tropicana. The Boardwalk casino was unable to get a formal offer from a buyer and now will be sold in a bankruptcy court auction without the customary low bidder.
Bondholders for the Tropicana and its former parent, Tropicana Entertainment L.L.C., are locked in a bitter fight in a Delaware courtroom over the fate of the troubled casino.
Company shares were priced at 14.9 cents at midafternoon in Nasdaq trading, down 35.22 percent, or 8 cents.
Contact staff writer Suzette Parmley at 215-854-2594 or sparmley@phillynews.com.
To see more of The Philadelphia Inquirer, or to subscribe to the newspaper, go to <a href="http://www.philly.com">http://www.philly.com</a>. Copyright (c) 2009, The Philadelphia Inquirer Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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