Trump Entertainment Resorts (TER) has confirmed that it has emerged from Chapter 11 bankruptcy protection after clearing around US$1.3bn (£851m) worth of debt.

Investment firm Avenue Capital Group has served as lead bondholder during the reorganisation of the company, which operates three casino resorts in Atlantic City, New Jersey, US. TER has also benefited from an injection of US$225m (£147m) of new equity into the business, with US$125m (£82m) going towards reducing pre-petition debt.

Avenue Capital Group's chair and chief executive officer Marc Lasry, who is to become chair of TER, said: "Trump Entertainment Resorts today begins a period marked by new financial strength." TER chief executive officer Mark Juliano added: "Our company is now well-capitalized and possesses a long-term strategy for growth. Our new board of directors and ownership group have made it clear that they are dedicated to the success of the Company over both the short- and long-terms."

The company entered Chapter 11 bankruptcy protection in February 2009.