I have written several articles on our President Trump. A list of the links have been provided at the bottom of this article for your convenience. This article will, however address different aspects on President Trump’s Presidency.
Trump Bankruptcies: 1. Trump Taj Mahal 2. Trump’s Castle 3. Trump Plaza Casinos 4. Trump Plaza Hotel 5. Trump Hotel and Casinos Resorts 6. Trump Entertainment Resorts
Trump Business Failures: 1. Trump Steaks 2. GoTrump 3. Trump Airlines 4. Trump Vodka 5. Trump Mortgage 6. Trump:The Game 7. Trump Magazine 8. Trump University 9. Trump Ice 10. The New Jersey Generals 11. Your de Trump 12. Trump Network 13. Trumped!
PolitiFact has taken a look at Trumps Bankruptcies when he ran for President in 2016. They determined they were a result of business struggles largely beyond his control. They were all chapter 11 filings which can potentially enable a business owner to avoid liquidating his company. Sometimes it is in the best interests of the business and allows it to reorganize and in no way reflects a poorly run business.
Chapter 11 allows a business to find ways to reduce their debt and restructure their operations without having to be shut down and liquidated to satisfy debts and allows the business to stay open and pay their employees, and take in revenue while developing a budget and a repayment plan for its creditors.
Also, the absence of bankruptcy does not necessarily indicate success. Many businesses simply close up.
Even though his name was still on these businesses, many of these fillings occurred when he no longer was involved in its running.
I will now discuss each Bankruptcy a little more closely.
1. Trump Taj Mahal. It opened in Atlantic City in 1990, with Trump financing its completion with $675 million in junk bonds at 14% interest. In one year it was in debt $3 Billion, while he owed $900 million in personal liabilities. In order to keep the casino afloat he struck a deal with his lenders in which he gave up half its ownership share and equity in the casino. He sold his Trump Shuttle Airline and his Trump Princess 220 foot yacht and agreed on limit oh his spending in exchange for lower interest rate on the loan.
2. And 3. Trump’s Castle and Trump Plaza Casinos 1992. Trump filed for Chapter 11 protection over their inability to make principal and interest payments on bonds. $550 million for the Plaza and $348 million for the Castle. Trump gave 50% in exchange for more favorable terms.
4. Trump Plaza Hotel 1992. Trump filed a 3rd time for bankruptcy for the Plaza Hotel on New York’s Fifth Avenue. He was forced to give 49% for better terms on a $550 million loan.
5. Trump Hotels and Casinos Resorts in 2004. He established this casino as a publicly traded company, an entity that eventually consolidated his three Atlantic casinos along with other properties under one company. He sought bankruptcy protection under Chapter 11. For the $1.8 billion in debt he reduce his ownership from 47% to 27% for better terms.
6. Trump Entertainment Resorts in 2009. His Atlantic group was renamed in 2004. In 2009 he filed for bankruptcy again with a $1.2 billion. He fought with his board of directors over restructuring. He again reduced his ownership to 10% and resigned as chairman of the board.
It almost as if the banks gave him loans at interest rates so high that he would not be able to make the payments, just so they could basically steal his company.
While he failed in several of his business ventures. This however is not uncommon, many start-up companies go out if business.
He has done better in Manhattan with real-estate investments and building projects, along with golf courses, luxury resorts and his TV show The Apprentice.
His aggressive business style has landed him in some hot water. It has also gave him some big pay-days. But what matters is not how many times you fall down is that you land on your feet at the end of the day. Thst is where he Excella and is the reason he is a Billionaire.