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On November 21, 2004, Trump Hotels & Casino Resorts, Inc. (THCR) filed for bankruptcy, buckling under the weight of trying to simultaneously service $1.8 billion in debt and overhaul aging casinos in the face of increasing Atlantic City competition from the Borgata Hotel Casino & Spa, a joint venture of Boyd Gaming (NYSE:BYD) and MGM Mirage (NYSE:MGM). This marked the second bankruptcy for Donald Trump's casino empire. In 1992, the developer's Atlantic City casinos had previously filed for Chapter 11 after collapsing under the weight of $1 billion in debt.

Effective May 20, 2005, the bankruptcy court approved THCR’s prepackaged restructuring. The Company emerged from bankruptcy, slimmed down, with $400 million less debt, a 400 basis point reduction interest costs and a more flexible capital structure

Under the restructuring plan, the company issued about 40 million shares of stock, and took a new name, Trump Entertainment Resorts Inc. (TRMP).

Holders owning about $1.8 billion of notes exchanged them for about $74 million in cash, along with $1.25 billion of new 10-year notes and about $395 million worth of common stock. These creditors ended up owning about two-thirds of the company.

After a 1,000 for 1 reverse stock split, previous holders of common stock who were unaffiliated with the Company, saw their existing shareholder interests wiped out.

As for The Donald, after infusing the restructured company with a $55 million cash equity investment and converting $16.4 million of debt he owned into common stock, he saw his stake shrink to about 27 percent from a prior 56 percent. Although the Donald was forced to cede day-to-day control of the gaming operations to others, to the dismay of common stock shareholders, The Donald remained chairman and chief executive.

Given The Donald’s penchant for attractive women, it should not surprise our readers that the Bankruptcy Court also approved the transfer of a 25% interest in the Miss Universe Pageant to Mr. Trump.

Critics of the reorganization plan called it a "sweetheart deal" for the real estate tycoon.

“Money was never a big motivation for me, except as a way to keep score,