Trump Hotels And Casino Resorts
A holding company for three casinos, Trump Hotels and Casino Resorts went bankrupt in November 2004. The casino was under a $1.8 billion debt, and the association decided to sell some stake to the bondholders. However, the holding company emerged from bankruptcy within a year in 2005 with a new name- Trump Entertainment Resorts Inc. However, the company was still in debt, which pushed Trump to give up his CEO title and sell most of the stocks to the bondholder.
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.
Construction And Property Law Matters
In 2011, Donald Trump sued Scotland, alleging that it built the Aberdeen Bay Wind Farm after assuring him it would not be built. He had recently built a golf course there and planned to build an adjacent hotel. Trump lost his suit, with the Supreme Court of the United Kingdom unanimously ruling in favor of the Scottish government in 2015.
In 2013, 87-year-old Jacqueline Goldberg unsuccessfully sued Trump on allegations that he cheated her in a condominium sale by bait-and-switch when she was purchasing properties at the Trump International Hotel and Tower.
In 2015, Trump initiated a $100 million lawsuit against Palm Beach County claiming that officials, in a “deliberate and malicious” act, pressured the FAA to direct air traffic to the Palm Beach International Airport over his estate, because he said the airplanes damaged the building and disrupted its ambiance. Trump had previously sued the county twice over airport noise the first lawsuit, in 1995, ended with an agreement between Trump and the county Trump’s second lawsuit, in 2010, was dismissed.
Recommended Reading: Has Mark Cuban Ever Filed For Bankruptcy
Were Watching Trumps 7th Bankruptcy Unfold
As a businessman, Donald Trump ran 6 businesses that declared bankruptcy because they couldnt pay their bills. As the president running for a second term, Trump is repeating some of the mistakes he made as a businessman and risking the downfall of yet another venture: his own political operation.
In the 1980s, Trump was a swashbuckling real-estate investor who bet big on the rise of Atlantic City after New Jersey legalized gambling there. He acquired three casinos that by 1991 couldnt pay their debts. The Taj Mahal declared bankruptcy in 1991, the Trump Plaza and the Trump Castle in 1992. Lenders restructured the debt rather than liquidate and Trump put his casino holdings into a new company that went bankrupt in 2004. The company that emerged from that restructuring declared bankruptcy in 2009. Trumps 6th bankruptcy was the Plaza Hotel, which he bought in 1988. It went bankrupt by 1992.
Trumps surprise victory in 2016 paralleled the arrival of the brash upstart in Atlantic City more than 30 years earlier. But in the fourth year of his presidency, the Trump operation is once again reeling. Voters give him poor marks for handling the coronavirus crisis, underscored by an outbreak at the White House that infected Trump himself. Democrat Joe Biden is beating Trump is most swing states and an Election Day blowout is possible. Trump has suggested he wont leave office if he loses, threatening a constitutional crisis and his own political legacy.
Payments Related To Alleged Affairs
Adult film actress Stormy Daniels has alleged that she and Trump had an extramarital affair in 2006, months after the birth of his youngest child. Just before the 2016 presidential election Daniels, whose real name is Stephanie Clifford, was paid $130,000 by Trump’s attorney Michael Cohen as part of a non-disclosure agreement , through an LLC set up by Cohen he says he used his own money for the payment. In February 2018, Daniels filed suit against the LLC asking to be released from the agreement so that she can tell her story. Cohen filed a private arbitration proceeding and obtained a restraining order to keep her from discussing the case. According to White House press secretarySarah Huckabee Sanders, Trump has denied the allegations.
In response, Trump said that he only knew about the payments “later on” Trump also said regarding the payments: “They didn’t come out of the campaign, they came from me.”
The Wall Street Journal reported on November 9, 2018, that federal prosecutors have evidence of Trump’s “central role” in payments to Stormy Daniels and Karen McDougal that violated campaign-finance laws.
You May Like: What Is Epiq Bankruptcy Solutions Llc
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.
Judith And Nicolas Jacobson
Now divorced, the Jacobsons were a married couple who previously owned a chandelier business in West Palm Beach, Florida. In 2004, Trump ordered three fixtures worth $34,000 for his Mar-a-Lago resort from them, but then refused to pay in full, saying the Jacobsons’ work was shoddy, WSJ reports. They denied this claim but facing endless legal wrangling, the couple settled.
“A review of Palm Beach County court records showed no other payment disputes involving Classic Chandeliers. The shop later closed. Mr. Jacobson died in 2015,” notes the WSJ.
Trump defends his history of payment disputes as simply the expected cost of being a tough negotiator in a cutthroat business. The WSJ article, in particular, offers Trump’s camp ample space to respond. They strongly defend the tactics as hard but fair , but the paper notes that they “stood out as particularly aggressive in the industry and in the broader business world.”
Will Trump’s treatment of contractors affect whether or not you decide to vote for him?
Inc. helps entrepreneurs change the world. Get the advice you need to start, grow, and lead your business today. for unlimited access.
Recommended Reading: Can Restitution Be Discharged In Bankruptcy
Fact Checking: Donald Trump Has Filed Bankruptcy Six Times
The Differences Between Bankruptcies: Chapters 7, 11, and 13
Recently, I met a prospective client with over $30,000.00 in medical debt. She lives with her one minor child and her annual household income around $40,000.00. She can pay her basic bills, but the massive medical debt is a different story. The collection phone calls are picking up and her stress level is beginning to affect her health. This same woman filed for Chapter 7 bankruptcy relief 6 years ago following a job loss, meaning that she would not be eligible for another Chapter 7 bankruptcy filing for 2 more years. She looks at me and says If our President can file bankruptcy whenever he gets into a pinch, why do I have to suffer for 2 more years? She recalled a news story saying that President Trump had filed bankruptcy at least four times prior to becoming our U.S. President.
Fact Checking: Has Donald Trump filed for bankruptcy relief 4 or 6 times?
Lets do some fact checking about how many times Donald Trump has filed for bankruptcy protection and why there is some debate over this number. During the 2016 presidential campaign, Hillary Clinton correctly pointed out that Donald Trump had filed bankruptcy 6 times. Here is a quick breakdown of the six Chapter 11 bankruptcy filings by companies owned by Donald Trump. All six of Donald Trumps bankruptcy filings were prior to him becoming our current U.S. President.
Trumps Rebound Story Meets Mounting Bankruptcies
It wont exactly be an October surprise, but it could still be a shock: a wave of business failures hitting during the campaign season.
Local business site Yelp found that 55 percent of the firms that closed during the worst of the pandemic beginning in March are now permanently shuttered. | Eric Gay/AP Photo
09/03/2020 04:30 AM EDT
While President Donald Trump prepares to promote an economic rebound, a wave of business failures is set to tell another story.
Economic-relief money drying up in August and September will mark a final blow for some firms that had managed to hang on so far with government aid which now appears unlikely to be renewed for weeks, if ever. Cold weather and flu season could end outdoor dining, halt other indoor activities and contribute to Covid-19 outbreaks at workplaces. And economists expect weak demand and tight credit especially for smaller businesses to add to the tens of thousands of firms that have already collapsed amid the Covid-19 pandemic, while restraining entrepreneurs hoping to replace them.
All of it could complicate Trumps narrative of a robust American comeback. The president has been plotting a hopeful message since the depths of the pandemic this spring, but its increasingly at odds with the mounting toll of corporate bankruptcies and deepening wounds for small businesses still bleeding from the spring shutdowns.
POLITICO Dispatch: September 3
By BEN WHITE
- Filed Under:
You May Like: How Many Bankruptcies Has Donald Trump Filed
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:
Trump Contractors: ‘it Was The Beginning Of The End For Us’
Trump takes umbrage at the idea that he went bankrupt, always pointing out that he never filed personally and that he used the bankruptcy laws to get richer.
Connolly said taking his casinos into Chapter 11 was “reasonable and responsible” and the right decision for Trump and his bondholders.
“It looked like a fair deal and actually kept them going,” Connolly said.
But Mike D’Antonio, author of the book “Never Enough: Donald Trump and the Pursuit of Success,” said the bankruptcies shouldn’t come with bragging rights.
“Donald likes to say his bankruptcy filings were just a tool he’s been using for his businesses,” D’Antonio said. “He’s had a string of failures. And you’re not just talking about big investors. You’re also taking about bond holders, not big banks…people who invested their retirements.
“So, you can call it a legal tool that he’s using, but lots of people have been hurt along the way. Its been a badge of shame for him.”
Tom Winter is a New York-based correspondent covering crime, courts, terrorism and financial fraud on the East Coast for the NBC News Investigative Unit.
Recommended Reading: What Is Epiq Bankruptcy Solutions Llc
Trump Has Several Business Bankruptcies On His Record
Trump-controlled businesses have sought bankruptcy protection several times after those entities nearly all of them casino properties were several hundreds of millions of dollars or more in debt :
#1) Trump Taj Mahal : The Trump Taj Mahal casino in Atlantic City opened in 1990, with Trump financing the completion of its construction with $675 million in junk bonds at 14% interest. By the following year the casino itself was in debt to the tune of $3 billion, while Trump himself owed some $900 million in personal liabilities.
In order to keep the Taj Mahal afloat, Trump struck a deal with his lenders in which he gave up half his ownership share and equity in the casino, sold his Trump Shuttle airline and his Trump Princess 220-foot yacht, and agreed to a bank-set limit on his personal spending in exchange for a lower interest rate and additional time to make his loan payments.
#2 and #3) Trumps Castle and Trump Plaza Casinos : Less than a year after the Taj Mahal bankruptcy Trump filed for Chapter 11 protection again for two more Atlantic City hotel-casinos, the Trump Plaza and Trumps Castle, over their inability to make principal and interest payments on bonds. The Plaza and the Castle were competing against each other, as well as against the Taj Mahal, and Trump gave up a 50% share in exchange for more favorable terms on the debts.
What Is At Stake For Donald Trump Its Certainly Not Just The Election
The brilliant businessman must repay more than $400m within four years. Next weeks vote could determine whether he can
Going bankrupt once is unfortunate. Going bankrupt twice looks like carelessness. Driving your companies into bankruptcy six times, however, as Donald Trump has done, makes you a brilliant businessman.
That is according to the US president, anyway. Trump, a self-described king of debt, is proud of his multiple business bankruptcies, boasting frequently about how he has brilliantly exploited corporate bankruptcy laws in order to wriggle out of his companies financial obligations. Time and time again, Trump has managed to make others employees, investors and banks pay for his failures. Trump, who has never declared personal bankruptcy, has been able to protect his own assets and move on to the next fiasco.
But is Teflon Dons luck finally running out? With just days to go until the US election, Trump is facing a potentially crippling combination of financial stressors. His business empire has been hit hard by the pandemic according to a recent report by the Washington Post, Trumps golf clubs and hotels are practically empty. They were not doing that well before the pandemic: the New York Times investigation into Trumps taxes last month found his businesses were losing money at a staggering rate.
Arwa Mahdawi is a Guardian columnist
Read Also: Bankruptcy Document Preparers
Donald Trump Drove His Companies Into Bankruptcy Six Times
Three of Trump’s properties filed for bankruptcy in 1992. Three other properties filed for bankruptcy – one at a time in 1991, 2004, and 2009.
Trump has previously claimed that he filed for bankruptcy for four of his companies. On Day 4 of the Democratic National Convention, Michael Bloomberg said that Trump had driven six of his companies into bankruptcy. We found that Bloomberg was right, and Trump filed for bankruptcy six times.
Trumps companies have filed for Chapter 11 bankruptcy protection, which means a company can remain in business while doing away with many of its debts. The bankruptcy court ultimately approves a corporate budget and a plan to repay remaining debts often, shareholders lose much of their equity.
The Washington Post reported that Trumps Taj Mahal, which opened in April 1990 in Atlantic City, defaulted on interest payments to bondholders six months later. In July 1991, Trumps Taj Mahal filed for bankruptcy. He could not keep up with debts on two other Atlantic City casinos, and those two properties declared bankruptcy in 1992. A fourth property, the Plaza Hotel in New York, declared bankruptcy in 1992 after amassing debt.
NBC reported that 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. They had accrued an estimated $1.8 billion in debt.
Legal Affairs Of Donald Trump
|This article needs to be . Please help update this article to reflect recent events or newly available information.|
|This article is part of a series about|
In June 2016, USA Today published an analysis of litigation involving Donald Trump, which found that over the previous three decades Trump and his businesses have been involved in 3,500 legal cases in U.S. federal and state courts, an unprecedented number for a U.S. presidential candidate. Of the 3,500 suits, Trump or one of his companies were plaintiffs in 1,900 defendants in 1,450 and bankruptcy, third party, or other in 150. Trump was named in at least 169 suits in federal court. Over 150 other cases were in the Seventeenth Judicial Circuit Court of Florida since 1983. In the 1,300 cases where the record establishes the outcome, Trump settled 175 times, lost 38, won 450, and had another 137 cases end with some other outcome. In the other 500 cases, judges dismissed plaintiffs’ claims against Trump.
The topics of the legal cases include contract disputes, defamation claims, and allegations of sexual harassment. Trump’s companies have been involved in more than 100 tax disputes, and on “at least three dozen” occasions the New York State Department of Taxation and Finance has obtained tax liens against Trump properties for nonpayment of taxes. On a number of occasions, Trump has threatened legal action but did not ultimately follow through.
Don’t Miss: How To Buy A New Car After Bankruptcy