UPDATE 1-Trump casino company emerges from bankruptcy

* Donald Trump again a shareholder, his ally is chairman

* Judge sides with Trump/Lasry, against Beal/Icahn group

* Avenue Capital biggest shareholder

WILMINGTON, Delaware, July 19 (Reuters) - Trump Entertainment Resorts, the Atlantic City casino company founded by celebrity developer Donald Trump, said it emerged from Chapter 11 reorganization -- for the third time -- on Friday.

The operator of three Atlantic City casinos said $225 million in new equity had been injected into the company, including $125 million intended to be used to reduce pre-petition debt, in accordance with its reorganization plan.

The company added it has eliminated about $1.3 billion in debt and will retain use of the Trump brand.

The New Jersey Casino Control Commission granted the required approvals for the reorganization earlier this week, Trump Entertainment’s statement said.

Trump Entertainment filed for bankruptcy protection in February 2009 after struggling with a heavy debt load and a slide in gaming revenue. Trump, who moonlights in a reality TV series, resigned as chairman just before the bankruptcy.

Trump Entertainment was the subject of a battle of the billionaires: Marc Lasry of Avenue Capital Group was the company’s largest bondholder and squared off against Andy Beal, the Texas banker who held the company’s secured debt.

When Trump switched allegiance from Beal to Lasry, Beal brought in yet another billionaire, Carl Icahn, on his side.

In the end, the judge sided with Trump and Lasry, who became the chairman of the reorganized company.

Trump’s pre-bankruptcy stake in the company was wiped out in the reorganization. However, he will acquire up to 10 percent as part of the group investing in the reorganized company’s equity.

Avenue Capital, which invests in financially hobbled companies, owns the largest stake of Trump Entertainment.

Founded in the 1980s, the Trump casino operations first filed for bankruptcy protection in the early 1990s. The company emerged with a new Trump name but filed for bankruptcy protection again in 2004, then emerged in 2005 as the current company.

The case is In re: TCI 2 Holdings, LLC, U.S. Bankruptcy Court, District of New Jersey, No. 09-13654 (Reporting by Tom Hals and Karen Jacobs in Atlanta; Editing by Gary Hill)