Trump Hotels Buys The Taj And The Trump Castle Fromtrump
Trump Hotels brief success came to a screeching halt when Trump used the company to buy his two other, heavily indebted Atlantic City casinos. In the case of the Trump Castle, Trump Hotels paid $100 million more than market value for the casino. That gave Trump two huge financial lifts. First, he pocketed an $880,000 personal fee for making the transaction. Second, and much more important, the $1.7 billion debt owed on the casinos suddenly no longer belonged to him, but to Trump Hotels. There may have even been a third benefit: David Cay Johnston, an investigative reporter who has covered Trump for decades, wrote for the Daily Beast earlier this month that Trump had likely earned a personal tax break in 1995 by forgoing future depreciation benefits on his casinos. That meant Trump got money for selling his casino hotels, while the investors got real estate with greatly diminished tax benefits, he wrote.
They Will See How Great It Will Become 2009
When Donald Trump has been pressed on his casinos performance during his presidential campaign, he has repeatedly said he left Atlantic City at the right time.
Atlantic City is a disaster, and I did great in Atlantic City, he said during a Republican Party debate last September, according to a transcript. I knew when to get out. My timing was great. And I got a lot of credit for it.
That would suggest Mr. Trump willingly left sometime around 2006, the year that revenues peaked in Atlantic City and that Pennsylvania allowed its first casino to open, a development that marked the start of a rapid downward spiral in the city. The drop-off was exacerbated by the recession that began in 2008.
But in early 2009, as Trump casinos lurched toward bankruptcy for the fourth time, Mr. Trump was still trying to hang on. At loggerheads with board members who had been selected by bondholders after the 2004 bankruptcy, he offered to buy all or a part of the casino company bearing his name. He was rebuffed, and he quit the board soon after.
Testifying in bankruptcy court in Camden, N.J., Mr. Trump argued that the company could not use his name, since shortly before filing the bankruptcy it had stopped paying him the $166,000 a month he received under the services agreement. He testified that his brand was worth $3 billion. He also testified that he was personally negotiating the settlement of a lawsuit in Florida that would yield more than $100 million for the company.
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Further, the S-4 mentions other ongoing litigation involving President Trump related to the 2020 election, including a lawsuit filed by the NAACP Legal Defense & Educational Fund, and a criminal investigation launched by the Fulton County, Ga., district attorneys office … into President Trumps alleged interference in the presidential election.
Also, the U.S. House of Representatives Committee on Oversight and Reform is investigating President Trumps alleged destruction and removal of classified documents and White House records, as well as potential inaccurate financial statements filed by the Trump Organization in relation to the Trump Hotel in Washington, D.C. ”
The document continues, On April 25, 2022, a New York state court judge held President Trump in civil contempt for failing to comply with a subpoena for documents related to the New York attorney generals investigation of the Trump Organization. President Trump, along with his three eldest children , are defendants in a class-action lawsuit accusing them and the Trump Corp. of defrauding investors in exchange for secret payments from multiple companies.
Also, The Trump Organization recently paid $750,000 to settle a lawsuit filed by the District of Columbia accusing the organization of misusing nonprofit funds from the 58th Presidential Inaugural Committee.
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Due To His Indebtedness His Reliance On Income From Overseas And His Refusal To Authentically Distance Himself From His Hodgepodge Of Business Trump Represents A Profound National Security Threat
In a tour de force of hard won reporting, the New York Times has put numerical clothing on what weve known about President Donald Trump for decades that, at best, hes a haphazard businessman, human billboard and serial bankruptcy artist who gorges on debt he may have a hard time repaying.
The Times, in a news story published Sunday evening that disclosed years of the presidents tax returns, also put a lot of clothing on things we didnt know. Trump paid just $750 in federal income taxes in 2016, the year he was elected president, and the same amount …
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May 1: Trumps First Casino Opens In Atlantic City
Trump built the Trump Plaza, the largest casino in Atlantic City at the time, in partnership with the casino chain Harrahs, with Trump overseeing construction and Harrahs parent company footing the $220 million bill. But Trump fought constantly with Harrahs over the partnership and eventually bought out its stake. To do so, he saddled the casino with more than $300 million in debt from junk bonds.
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Examining Donald Trumps Chapter 11 Bankruptcies
personal bankruptcyFact-checking claims about Donald Trumps four bankruptcies.Chapter 7Chapter 13Joel R. Spivack Esq. is an experienced bankruptcy attorney who specializes in helping individuals through personal bankruptcy. Contact him today to help you explore your legal options so that you can move on with your life and make a fresh financial start. Examining Donald Trumps Chapter 11 BankruptciesSpivack Law
Trumped: The Donald Has Filed For Bankruptcy Multiple Times What’s His Strategy And What Can It Teach You
With a net worth in the billions of dollars, you would never have guessed it. But, lo and behold, Donald Trump has filed his businesses for bankruptcy four times since 1991. Was this a mistake? Did the billionaire Trump make a fatal error that caused his corporations to collapse? Just the opposite, in fact. Trump says that every bankruptcy filing was strategic. He even goes further to expand his strategy to the business community, in saying that every high-level business man should take advantageous of the laws, including the laws of bankruptcy. To understand Trump’s decisions, we fist must understand the full situation behind his actions.
While Trump’s businesses have filed for bankruptcy Trump himself has never filed for personal bankruptcy. From 1991 onward, four of his businesses have filed for Chapter 11 restructuring. For a more in depth look at Trumps bankruptcies, take a look at a review of his bankruptcies. On a high level, here is how the Chapter 11 filings turned out:
1. Trump Taj Mahal, 1991
Trump had initially financed the establishment by selling north of $1 billion of “junk” bonds, with a promised return of 14 percent interest. When the economy tanked, the Trumpt Taj Mahal was over $3 billion in dept. What Trump then did, to make amends with his lenders, was giving up half of his ownership state and selling his plane and yacht.
2. Plaza Hotel, 1992
3. Trump Hotels and Casino Resorts, 2004
What then, were the factors that enabled Trump to create his fortune?
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“The first business bankruptcy, he had a lot of personal liabilities, guarantees on the business debt, which would have wiped him out,” Connolly said. “What he did was leverage the amount of business debt to negotiate away his personal liability. And from that, he learned not to put his personal wealth at risk anymore. And so in the next three, he didn’t have any personal guarantees.”
Through the ordeal was bruising for Trump, one person involved in the case said his brand and persona helped him to retain more equity than he might have otherwise. And in true Trump fashion, he denied being too concerned about the issue anyway.
“You’ll never see me sitting in the corner sucking my thumb,” Trump told BusinessWeek at the time. “The name Trump will be hotter than ever.”
1992, Plaza Hotel
Trump bought New York’s Plaza Hotel for $390 million in 1988, promising to turn the then 81-year-old landmark into “the most luxurious hotel in the world.” He told the New York Times that his wife, Ivana, would become president of the hotel with a salary of “$1 a year plus all the dresses she can buy.”
Four years later, Trump and Ivana had split, and the hotel had millions of dollars in debt.
Trump seems to have had an inkling from the get-go that the Plaza deal may not have been the best he ever made .
Three years later, in 1995, Trump made a deal to sell the Plaza to Singapore-based international property and hotel conglomerate CDL Hotels International and Saudi Arabian Prince Walid bin Talal.
Presidential Campaign And 2011 Hints At Presidential Run
In 2000, Trump ran in the California and Michigan primaries for nomination as the Reform Party candidate for the 2000 United States presidential election but withdrew from the race in February 2000. A July 1999 poll matching him against likely Republican nominee George W. Bush and likely Democratic nominee Al Gore showed Trump with seven percent support.
In 2011, Trump speculated about running against President Barack Obama in the 2012 election, making his first speaking appearance at the Conservative Political Action Conference in February 2011 and giving speeches in early primary states. In May 2011, he announced he would not run, and he endorsed Mitt Romney in February 2012. Trump’s presidential ambitions were generally not taken seriously at the time.
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We Have A Company Thats Really Got Great Potential 2005
Though he has acknowledged mistakes in piling crippling debt on Trump Hotels and Casino Resorts, Donald Trump has steadfastly maintained that his resorts were the best-run and highest-performing casinos in Atlantic City.
The casinos have done very well from a business standpoint, he told Playboy magazine in 2004. People agree that theyre well run, they look good and customers love them.
In reality, the revenue at Mr. Trumps casinos had consistently lagged behind their competitors for a decade before larger forces ravaged the industry. Beginning in 1997, his share of the Atlantic City gambling market began to slip from its peak of 30 percent.
Revenues at other Atlantic City casinos rose 18 percent from 1997 through 2002 Mr. Trumps fell by 1 percent.
Competition grew more intense in 2003, when the Borgata Hotel Casino and Spa opened. The $1.1 billion, 40-story resort redefined the concept of an Atlantic City luxury casino. Revenues at Trump casinos dropped another 6 percent in a little more than a year.
Had Mr. Trumps revenues grown at the rate of other Atlantic City casinos, his company could have made its interest payments and possibly registered a profit. But with sagging revenues and high costs, his casinos had too little money for renovations and improvements, which are vital for hotels to attract guests. The public company never logged a profitable year.
I think the biggest thing is, it understates his compensation, Mr. Cox said.
We Are Watching Trumps 7th Bankruptcy Unfold
Donald Trump was a businessman who ran six businesses that went bankrupt because they couldnt pay their bills. Trump, who is running for president again, repeats some of his business mistakes and risks the demise of another venture: his political operation.
Trump, a charismatic real-estate investor and swashbuckler in the 1980s, bet big on Atlantic Citys rise after New Jersey legalized gaming. Trump acquired three casinos that couldnt pay off their debts by 1991. In 1991, the Taj Mahal, Trump Plaza and Trump Castle declared bankruptcy.
Trump transferred his casino assets to a new company, which went bankrupt in 2004 after the lenders restructured the debt. In 2009, the company that emerged from this restructuring declared bankruptcy. Trumps sixth bankruptcy was the Plaza Hotel which he purchased in 1988. It was declared bankrupt in 1992.
Trumps 2016 surprise win mirrors the 30-year-old arrival of Atlantic Citys brash young man. Trumps presidency is now in its fourth year. He gets poor marks from voters for his handling of the coronavirus crisis. The outbreak exacerbated this at Trumps White House.
Democrat Joe Biden is winning in most swing states, and an Election Day blowout could be possible. Trump has suggested he wont leave office if he loses, threatening a constitutional crisis and political legacy.
Trumps bankruptcies are an essential reason for the Trump campaigns current turmoil.
These are five similarities:
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Truth Social Buyer Warns Of Bankruptcy Risk Given Trump’s Past Failures
The company purchasing Donald Trump‘s media network, Truth Social, warned investors on Monday that there might be a bankruptcy risk given the former president’s history of failed business ventures.
A regulatory filing by Digital World Acquisition Corp. highlighted several examples of bankruptcy associated with Trump while noting that there is “no guarantee” Truth Social will be successful.
Digital World announced a merger with Trump Media and Technology Group , which owns Truth Social, in October. The social media network was launched in February after the former president was barred from mainstream social media platforms in the aftermath of the January 6, 2021, riot at the U.S. Capitol.
In Monday’s filing, Digital World outlined the bankruptcies of several Trump ventures, including Trump Taj Mahal, Trump Plaza and Trump Castle in Atlantic City, as well as the failures of Trump University, Trump Vodka, Trump Steaks and GoTrump.com.
“A number of companies that had license agreements with President Trump have failed. There can be no assurances that TMTG will not also fail,” the filing states. “While all of the foregoing were in different businesses than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of those entities.”
Newsweek reached out to TMTG for comment.
May 1: Trump Buys An Airline
Trump soon bought another expensive business, taking over Eastern Airlines Boston-New York-Washington shuttle service and renaming it the Trump Shuttle. But he bought more planes from Eastern than he needed to run the shuttle service and dumped lots of money into upgrading the planes with plush interiors and faux-marble lavatories with gold-plated sinks. The shuttle quickly started losing money.
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Trump Has Filed For Six Business Bankruptcies
Trump, however, filed for bankruptcy regarding these companies:
Critics cite that the Trump corporate bankruptcies are examples of his inability to manage, his recklessness, and poor business acumen. Trump answers that criticism by stating he has used federal laws to protect his business interests. This idea is an example, he says, of his business insight and outstanding intelligence. Trump stated in August 2015:
I have used the laws of this country just like the greatest people that you read about every day in business have used the laws of this country, the chapter laws, to do a great job for my company, my employees, myself and my family.
In reporting from the New York Times, in 2016, Trump put up a small amount of his own money, moved personal debts to the casinos, and was awarded millions of dollars in salary, payments, and bonuses. The Times countered by sharing that the burden of his failures fell on the investors and those who bought into his business acumen self-assessment.
Three of the casino-related bankruptcies came about during the time of the early 1990s recession and the Gulf War crisis. Both of these situations made keeping Atlantic City, New Jersey gambling facilities face some hard times. At about this same time, Trump entered into a project that involved a Manhattan hotel and two casino holding companies.