The Trump Taj Mahal, the 24-year-old Atlantic City, N.J., boardwalk casino, has recently broken some of its loan covenants and without a quick deal with its creditors could be headed for a chapter 11 reorganization within days, the New York Post reported today. So far, talks between Trump Entertainment Resorts — which owns the Taj and its neighbor, the soon-to-close Trump Plaza — and its creditors have not found an out-of-court solution, sources said. There was hope around the negotiation table that Carl Icahn, who owns much of the Trump Entertainment debt, would agree to convert that debt into equity and keep the 2,248-room hotel-casino out of Chapter 11. Marc Lasry’s Avenue Capital in 2009 led a group of hedge funds that bought Trump Entertainment out of bankruptcy, beating a competing offer from Icahn. Donald Trump retained a less than 10 percent stake.
