Donald Trump Loves Bankruptcy

Donald Trump has written many books about business but they all seem to end at Chapter 11! The following summary of the six (6) Trump bankruptcies was complied from the Associated Press; Washington Post; and Politifact news organizations.

Bankruptcy # 1: The Trump Taj Mahal, 1991

Trump’s first bankruptcy involved the construction of the $1,000,000,000.00 billion Trump Taj Mahal casino in Atlantic City, N.J., which opened in 1990.  A year later, the casino was nearly $3 billion in debt, while Trump had racked up nearly $900 million in personal liabilities.

Bankruptcy # 2: Trump Castle, 1992

Within a year of his first Chapter 11 filing, Trump found himself in bankruptcy court again for Trump Castle. In March 1992, the Castle filed a prepackaged bankruptcy plan, and Trump gave up his 50 percent share in the casino.

Bankruptcy # 3: Trump Plaza and Casino, 1992

The Trump Plaza Hotel and Casino in Atlantic City declared bankruptcy at the same time as the Castle in 1992.  The casino had racked up $250 million in debt by 1992, after a staggering 80 percent decline in cash flow.

Bankruptcy # 4: Plaza Hotel, 1992

Later that year, Trump filed bankruptcy on another Trump Plaza in New York. Trump purchased the Plaza Hotel in Midtown Manhattan for $390 million in 1988, but it accumulated more than $550 million in debt by 1992.  In December 1992, Trump relinquished a 49 percent stake in the Plaza to a total of six lenders.

Bankruptcy # 5: Trump Hotels and Casinos Resorts, 2004

Trump Hotels and Casinos Resorts filed for bankruptcy again in 2004 when his casinos — including the Trump Taj Mahal, Trump Marina and Trump Plaza casinos in Atlantic City, and a riverboat casino in Indiana — had accrued an estimated $1.8 billion in debt.

Bankruptcy # 6: Trump Entertainment Resorts, 2009

Trump Entertainment Resorts missed a $53.1 million bond interest payment in December 2008. It declared Chapter 11 in February 2009. After debating with the company’s board of directors, Trump resigned as the company’s chairman and had his corporate stake in the company reduced to 10 percent.

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