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Four Bankruptcies rule out Trump

by YankeeJim | April 13, 2011 at 04:33 am

326 views | 4 Recommendations | 6 comments

Try to get a security clearance with one bankruptcy and good luck. It isn’t likely to happen. Try it with 4 bankruptcies like Donald Trump and it is strikeout plus one.

“Excessive indebtedness increases the temptation to commit unethical or illegal acts in order to obtain funds to pay off the debts. Most Americans who betrayed their country did it for financial gain—about half were motivated by a real or perceived urgent need for money and about half by personal greed.”

“How Many Times Has Donald Trump Filed For Bankruptcy?

By: Jennifer Mackin

Break Studios Contributing Writer

For legendary tycoons, Donald Trump tops the list, but how many times has Donald Trump filed for bankruptcy? The 90’s recession wasn’t picky about who it affected. Donald Trump felt the pinch as well. His decision to use high interest bonds to finance the assembly of the Taj Mahal casino caused life to get very stressful for the tycoon.

In 1991, unable to pay a $3.5 billion loan, he declared business bankruptcy. He also came close to filing personal ruin. At the time, his personal debt was estimated to be around $900 million. Due to the bankruptcy, banks and bondholders lost millions. They came to a compromise with Donald Trump. The banks gave him lower interest rates and a longer time frame to repay the debt and Donald Trump gave the investors half the ownership of the Taj Mahal. In mere months the casino was back in business.

Not even a year later, Trump Plaza Hotel folded and Donald had to declare bankruptcy. Again, he worked out a deal where he’d give up 49 percent of the hotel to Citibank and the other lenders and he’d get more time to pay the loan back. It took him two years to repay most of his debt with many sacrifices. He had to give up the Trump Shuttle.

The bankruptcy saga didn’t stop there. In 2004, Donald filed for bankruptcy protection and restructured his debt. He reduced his ownership of Trump Hotels & Casino Resorts to 27 percent and gave bondholders stocks to help lower his debt and then stepped down as CEO. In 2005, things settled down and Trump Hotels & Casino Resorts came out of bankruptcy with a new name, Trump Entertainment Resort Holdings.

Unfortunately the reemergence didn’t last long. On February 17th 2009, Donald Trump filed for Chapter 11 bankruptcy with a debt ratio of $50 million in assets to his $500 million in debt. This filing made the third bankruptcy for Trump Enterprises.

Posted on: Apr. 23, 2010”

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The 1

at 05:36 on April 13th, 2011

Yet Trump has had no problem getting credit. And today is worth a billion or more once again. In the end, the system maybe as much to blame, as Trumps mishaps. He is riding the wave of an American financial system, taking every advantage.

I do like some of what he has to say; specifically about OPEC excess and status of American leadership. He does have some biting attitudes and views though. 2012 election season will be interesting to watch.

YankeeJim

at 06:41 on April 13th, 2011

Trump is the perfect example of what is wrong with the system. I am glad that he has come forward because it provides a great opportunity to make the point.

We are watching the very rich exploit all they can from the system.

Mary Jane Miller (not verified)

at 03:17 on April 17th, 2011

Show me a man who has not had failure and you will see someone who has not lived life. It is so easy to point fingers.. but have you walked in his shoes... have you created anything very big. When you make BIG DEALS you win some and lose some.. show me a successful Football team who has NOT LOST A GAME... before they won the Superbowl ... he has been in the GAME and just like Superbowl he won some before and lost some...Business is like football.. it is ALL ABOUT PLAYING and recovery for the NEXT BIG GAME...#1 - He does not need a TELEPROMPTER to READ words written from someone else... he has a MIND that can compose words on his own.

YankeeJim

at 12:22 on April 13th, 2011

Eric Cantor dismissed Donald today.

tikun

at 13:26 on April 13th, 2011

Everyone given the opportunity takes advantage of the system. Plays the system. As long as no laws are broken so be it. Why is it okay for Jesse Jackson to blackmail corporations. Why isnt it okay forTrump to find every opportunity to succeed. Most in the know understand that it takes 90% failures in order to succeed as an entrepreneur. All you need is 10% success.

There is too much jealousy and whining and even less interest in being happy with ones life. We spend more time criticizing others and less time improving ourselves. This is the path to the downfall of America.

The Obamas will come and go. He is already a multi-millionaire and has nicely provided for his family. If Americans really believe the Govt. is going to bail them out of this economic mess then I have a bridge to sell you.

It is never easy even in the best of times. No one said life is supposed to be easy or even successful. But if we stop for a second and take a breath of fresh air and realize what we have and be grateful then all the chaos around us is but a blur to the light that shines.

YankeeJim

at 13:36 on April 13th, 2011

That's not the way I read it.

20% of businesses succeed after start up whereby they are profitable and doing well after four years or so. 80% fail because 1) they did not provide a superior product or service, 2) were poorly managed, 3) could not raise sufficient capital to keep up with success.

There are other reasons, of course.

Gaming has been the nature of the real estate business and gaming with public funds and taking advantage of the financial institutions without getting caught was exactly what brought down the US and world economy. Donald Trump is a perfect example of what we don't need.