The Atlantic City-based casino company said there can be no assurance that any agreement will be reached.

Revenue at Atlantic City's casinos dropped by 9.9 per cent to US$346.2 million in October from a year ago as the national economic downturn deepened the gambling industry's woes.

The October decline followed a 15.1 per cent plunge in September, the biggest overall fall in gaming revenue in the 30-year history of New Jersey's gambling capital, according to the state's Casino Control Commission.

Trump Entertainment, chaired by property magnate Donald Trump, was created out of a bankruptcy restructuring in 2005.

Its shares have fallen from US$5.70 last December to a close of 31 cents on Friday.

Casino industry struggles
Casino companies have suffered over the past year as the gambling boom in Las Vegas has fizzled, tight credit markets have jeopardised growth plans and the Chinese government has acted to slow down the Macau gambling market.

The once-booming sector is now facing a wave of restructuring or even bankruptcies, as it struggles to finance new projects and casinos see customers put a tap on spending.

In the last year, casino operator Tropicana Entertainment LLC has filed for bankruptcy while a deal to take Penn National Gaming Inc private fell apart as the sector turned sour.

On Nov 7, Trump Entertainment posted a third-quarter net loss of US$139.1 million, or US$4.39 per share, compared with a year-earlier profit of US$6.6 million, or 21 cents per share.

Net revenue fell to US$198.3 million from US$216.6 million. -- REUTERS