It Will Be The Best 1996
Donald Trump has said that his brushes with financial disaster in the early 1990s reminded him of a lesson his father had taught him: Do not leave yourself on the hook for loans.
My father knew, like I knew, you dont personally guarantee, Mr. Trump is quoted saying in TrumpNation: The Art of Being the Donald, by Timothy L. OBrien, a former reporter for The Times. Ive told people I didnt follow my own advice.
His agreements with lenders and the two casino bankruptcies in those years still left Mr. Trump personally responsible for more than $100 million in debt, and his agreements had only delayed the day of reckoning to June 30, 1995.
He dealt with that danger by first shifting much of his personal debt onto his casinos, then onto a new group: .
Step 1 came in 1993, when his company sold more junk bonds, adding another $100 million in debt to the Trump Plaza casino. More than half of the new money went to pay off Mr. Trumps unrelated personal loans.
Then, in June 1995, with the risk of being forced into bankruptcy just weeks away, Mr. Trump shifted ownership of the Plaza casino to a new, publicly traded company: Trump Hotels and Casino Resorts. In the initial public offering, 10 million shares were sold at $14. At the same time, the company also sold another $155 million in junk bonds, at a 15.5 percent interest rate.
Indeed, the company posted losses of $66 million in 1996, $42 million in 1997 and $40 million in 1998. Those losses would continue.
Inheritance And Further Acquisitions
In 1996, Trump acquired a vacant, 70-story office building at 40 Wall Street in Manhattan, renovated it, and branded it as The Trump Building. In 1998, Conseco and Donald Trump purchased the General Motors Building for $878 million from Corporate Property Investors. The group received a $700 million loan from Lehman Brothers for the purchase and Trump reportedly only committed $15 to $20 million of his own money to the deal. Trump raised the controversial sunken plaza where few pedestrians had ventured, which had been criticized by Huxtable, and installed his name in four-foot gold letters. In 2003, Trump and partners sold the building for $1.4 billion, then the highest price paid for a North American office building, to Macklowe Organization.
After his father died in 1999, Trump and his siblings received equal portions of his father’s estate valued at $250â300 million.
In 2001, Trump completed Trump World Tower, a 72-story residential tower across from the United Nations Headquarters. Trump also began construction on Riverside South, which he dubbed Trump Place, a multi-building development along the Hudson River. He continued to own commercial space in Trump International Hotel and Tower, a 44-story mixed-use tower on Columbus Circle which he acquired in 1996, and also continued to own millions of square feet of other prime Manhattan real estate.
Used Little Of Own Money
The New York Times, which conducted an analysis of;regulatory reviews, court records, and security filings, found otherwise, however. It reported in 2016 that Trump “put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses, and other payments.
“The burden of his failures,” according to the newspaper, “fell on investors and others who had bet on his business acumen.”
Read Also: When Does Chapter 7 Bankruptcy Fall Off Credit Report
Despite Holding Huge Assets Trump Needs Money More Than His Presidential Predecessors Ever Did But He Faces Multiple Barriers Of His Own Making
Find your bookmarks in your Independent Premium section, under my profile
Find your bookmarks in your Independent Premium section, under my profile
As Trump knows only too well, lawyers are expensive
What next for Donald Trump? World leaders dont, as a rule, go hungry upon leaving office. There are positions on corporate boards to take up, lucrative speaking engagements to be booked, handsome advances for books even if they dont sell quite as well as expected . The consulting opportunities are endless, as Tony Blair has proved. Theyre not always terribly savoury but that usually merits only passing attention.
Trump, however, is in the difficult position of needing the money more than any of his predecessors did, despite holding huge assets. He also faces barriers of his own making the insurrection he fomented the most obstructive of all to at least some of the perks former presidents typically enjoy. Many of the people who welcomed George W Bush and cut him a cheque when he wasnt painting wont want to associate with Trump.
His legal problems, meanwhile, are just beginning and legal experts consider the idea of Trump preemptively pardoning himself a non-starter. Besides, this would only cover federal, and not state, offences. ;
What We Don’t Know
There are some caveats to keep in mind when assessing the data in the Trump Organization’s financial disclosure forms.
First, the data is unaudited, self-reported data, meaning that readers have to take the company’s word that it’s accurate.
Second, many of the numbers listed as “income” from certain assets seem, instead, to be the revenue from those businesses. This was confirmed when data from Trump’s tax returns were released by The New York Times showing that many of the businesses have been losing money, including some of the largest revenue producers, such as Trump National Doral golf resort.
That being the case, the financial numbers don’t show the amount of money that the former president actually took home as income. For example, in Trump’s 2017 disclosure, he listed his income for the Trump National Doral golf resort as $75 million, which matches the revenue number reported to Miami-Dade County. Net operating income for the resort for that year was dramatically smaller at $4.3 million.
Getting a clear picture of the former president’s businesses is further complicated by the fact that income and asset values are listed in very wide ranges. For example, Mar-a-Lago Club is listed as having a value of “over $50,000,000.” The Trump National Golf Club in Charlotte is listed as worth between $5 million and $25 million.
Also Check: What Is Epiq Bankruptcy Solutions Llc
Trump Never Loses Another Chance
Despite his many missteps, Trump has always rebounded and found new ways to pursue his interests.;Trump shifted his business from developing projects to licensing and management deals after he had failed in the 1990s.;
Trumps star rose to new heights when he was made a reality TV star as The Apprentice even though his casino business went bankrupt twice more. He capitalized on his fame to run for President in 2016, defeating two political dynasties, the Clinton and Bush families, on his way to becoming the White House.
Even if he loses in democrats2020 and experiences the same embarrassing setback as his hotel or casino failures, Trump will still be there.;Trump has an extraordinary gift for selling that leads to more deals, sometimes with ex-partners who have reacted negatively to him but then warmed to him again.;
Trump sued Deutsche Bank in 2008 to get some of his loan payments back. He was trying to sell condos in his Chicago tower.;After two years of legal battles, the two sides settled, and Deutsche Bank began lending Trump money again in 2011.;Trump likely hopes that 2020 voters will be equally forgiving.
Refusing To Pay Workers And Contractors
Where and when: various, 1980spresent
The dirt: Contractors, waiters, dishwashers, and plumbers who have worked at Trump projects say that his company stiffed them for work, refusing to pay for services rendered. USA Today did a lengthy review, finding that some of those contracts were for hundreds of thousands of dollars, many owed to small businesses that failed or struggled to continue because of unpaid bills.
The upshot: Trump has offered various excuses, including shoddy workmanship, but the scale of the problemhundreds of allegationsmakes that hard to credit. In some cases, even the lawyers Trump has hired to defend him have sued him for failing to pony up their fees. In one lawsuit, a Trump employee admitted in court that a painter was stiffed because managers determined they had already paid enough. The cases are damaging because they show Trump not driving a hard bargain with other businesses, but harming ordinary, hard-working Americans. More recently, several contractors filed $5 million in liens against Trumps new hotel in Washington, alleging he has not paid them for services rendered.
Recommended Reading: When Does Chapter 7 Bankruptcy Fall Off Credit Report
The Husband And Father
Mr Trump has been married three times, though his most famous wife was his first – Ivana Zelnickova, a Czech athlete and model. The couple had three children – Donald Jr, Ivanka and Eric – before they filed for divorce in 1990. The ensuing court battle made for numerous stories in the tabloid press. Those stories included allegations that he was abusive towards Ivana, though she later downplayed the incidents.
He married actress Marla Maples in 1993. They had a daughter named Tiffany before divorcing in 1999. He married his current wife, Slovenian model Melania Knauss, in 2005, and the couple have one son, Barron William Trump.
His children from his first marriage now help run Trump Organization, though he is still chief executive. Ivanka, his eldest daughter, followed her dad to the White House, where she and her husband, Jared Kushner, served as senior advisers.
Admirably Tough Or Downright Slimy Your Call
Donald Trump has ticked off a whole lot of different groups during his outspoken and unconventional run for the presidency. Few small business owners are among them.
Back during the primaries when he was an unlikely challenger to a slew of other more mainstream Republican candidates, Trump managed to attract the support of a whopping 41 percent of small business owners despite the crowded field. Even after a year of gaffes and controversy, more recentpolls suggest small business owners remain among Trump’s most stalwart supporters.
But there are some interesting and very vocal exceptions — the many small business owners Donald Trump has stiffed in his long career as a real estate tycoon.
Recently several media outlets have dug up a handful of business owners with worrying tales to tell of Trump’s bullying, unfairness, and failure to pay. And while their numbers aren’t huge, there are enough of them to suggest a pattern of behavior that raises questions about whether pre-politics Trump was much of a friend to small business in practice. Here are a few of their stories:
You May Like: How Many Bankruptcies Has Donald Trump Filed
How Many Times Has Trump Filed Bankruptcy
11th October 2016
; Filed under: News
Donald Trump running for the most coveted position in world politics; its not much of a surprise that his entire business life has come to the public spot light. In digging up his past business dealings, past bankruptcies have emerged leading us to the question: how many times has Donald Trump filed bankruptcy exactly? The answer may surprise you: its zero.;Trump has owed many businesses over the past few decades including a football team and an airline company. Many of Trumps BUSINESSES have filed for bankruptcy, he however, has not personally ever filed. In all Trumps companies have had to file for bankruptcy a total of 6 times, and 5 of those were related to his casinos.;Does Trump have the business savvy to lead the country? While we cant answer that question, we can say without much doubt that he obviously understands bankruptcy protects laws in the country. These bankruptcy laws were created to protect the consumer and creditor alike, and while making the decision to file for bankruptcy is never an easy one, it is certainly a useful vehicle to gain a second chance at financial health.
Recent Posts
How Many Casinos Did Donald Trump Bankrupt
byMonellaNovember 24, 2020, 12:56 pm
Donald Trump, the ex-president of the United States, has always been projected as a successful businessman. He stated a net worth of $10 billion from his various companies, but many of them went bankrupt. As stated by the critics, one of the main reasons behind this is his management strategies and reckless attitude towards the work. However, people working with him say that he efficiently used the federal laws in his favor, which is a clear depiction of his keen business understanding.
According to several research and interviews conducted, it was found that Trump invested a minimal amount of his own money in the venture. He shifted his debt to the casino slots, earned millions of dollars in salary and other payments. It means his bankruptcys main burden fell on the investors and other stakeholders associated with his companies.
You May Like: How To File Bankruptcy In Wisconsin
Smart Annual Subscribe Now And Get 12 Months Free
Note: Subscription will be auto renewed, you may cancel any time in the future without any questions asked.
- Unlimited access to all content on any device through browser or app.
- Exclusive content, features, opinions and comment hand-picked by our editors, just for you.
- Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
- Track the industry of your choice with a daily newsletter specific to that industry.
- Stay on top of your investments. Track stock prices in your portfolio.
Personal Vs Corporate Bankruptcy
One point of clarification: Trump has never filed personal bankruptcy, only corporate bankruptcy related to some of his business interests. I have never gone bankrupt, Trump has said.
Here is a look at the six Trump corporate bankruptcies. The details are a matter of public record and have been widely published by the news media and even discussed by Trump himself.
Recommended Reading: What Is Epiq Bankruptcy Solutions Llc
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.
The Resignation Of Michael Flynn
Lt. Gen. Michael Flynn was tapped by Trump to be his national security adviser in November 2016, just days after the presidential election. He resigned the position after just 24 days on the job, in February of 2017 after The Washington Post reported that he lied to Vice President Mike Pence and other White House officials about his meetings with a Russian ambassador to the United States.
What the Scandal Is About
The meetings Flynn had with the;Russian ambassador were portrayed as being potentially illegal, and his alleged cover-up of them concerned the Justice Department, which believed his mischaracterization made him vulnerable to blackmail by the Russians. Flynn was said to have discussed U.S. sanctions on Russia with the ambassador.;
What Critics Say
Critics of Trump saw the Flynn controversy as further evidence of the presidential campaign’s ties to Russia and its possible collusion with Russia to damage Clinton.
What Trump Says
The Trump White House was more concerned about leaks to the news media that about the actual nature of Flynn’s conversations with the Russian ambassador. Trump himself reportedly asked Comey to drop his investigation of Flynn, saying, I hope you can see your way clear to letting this go, to letting Flynn go, according to The;New York;Times.
You May Like: How Many Donald Trump Bankruptcies
Suing Journalist Tim Obrien For Libel
Where and when: New York City, 200609
The dirt: In 2005, then-New York Times reporter Tim OBrien published the book TrumpNation, in which he reported that Trump was actually only worth $150250 million, not the billions he claimed. Trump, incensed, sued OBrien for $5 billion.
The upshot: Trumps suit against O’Brien was tossed. More recently, OBrien has mocked Trumps current claims about his net worth. Trump, meanwhile, has said on the campaign trailand, mindblowingly, in an interview with the Washington Post editorial boardthat he wants to make it easier to sue for libel. The Post combed through Trumps deposition in the case and found 30 instances where Trump admitted to having lied.
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
Also Check: How Soon After Filing Bankruptcy Can I Buy A House