Resorts International Inc., the casino company owned by Merv Griffin, said today it will file for bankruptcy protection from creditors after a struggle to refinance its debt over the objections of major bondholders.
The Atlantic City, N.J., company said it will file a proposed plan for a reorganization under Chapter 11 of the federal Bankruptcy Code.
The company, suffering cash problems linked to a costly junk bond takeover financing carried out last year, stopped paying on its bonds in August but was believed close to an agreement to avoid bankruptcy.
Resorts said its reorganization will be based on an agreement with creditors that it proposed Nov. 13.
The filing and the reorganization plan also include affiliates Griffin Resorts Inc., Resorts International Financing Inc. and Griffin Resorts Holding Inc.
It said certain Resorts operating companies in Atlantic City, N.J., and the Bahamas are not involved in the proceedings.
Resorts said the reorganization plan would require approval by 50% of voting bondholders and the holders of two-thirds of the principal amount of the voted notes and debentures.
The plan has been approved in principle by a number of substantial holders of notes and debentures, it said.