Donald Trump isn’t embarrassed and he’s worth $2.7 billion.
Donald Trump’s casinos, Trump Entertainment Resorts, emerged from Chapter 11 bankruptcy on Friday, July 16 2010. This followed two previous bankruptcies by the Trump casinos. First in 1991 and again in 2004 – 2005. (Trump’s other big business failure was Trump Airlines , which never made a profit.)
This newest bankruptcy eliminated $1.3 billion in debt.
The Reuters news article reporting all this, called Trump a “celebrity developer.”
Apparently Donald Trump can stay a celebrity developer while wiping out over a billion dollars in the bankruptcy court. (All 12,000 bankruptcies I’ve handled, eliminated about half that, total.)
So far, Trump has avoided personal bankruptcy. He makes better use of corporations than most people. Also, he’s benefited because the hundreds of millions in business bankruptcy losses are enormous!
The massive size of the debts encouraged the creditors to “restructure his debt to avoid the risk of losing more money in court.” I pass this on, because I talk to dozens of people every month who are mortified at having to file bankruptcy.
People can feel like their lives are over. People say, “I wasn’t raised this way.” (As if the way people are raised can pay the credit cards when you lose your job. Or get sick.)
Last I checked, Donald Trump still has his TV show. And, while other stockholders were wiped out. Trump is still 10% owner of the casinos.
Donald Trump filed bankruptcy on ten thousand times more debt than my highest dollar clients. I doubt he’s ten thousand times as embarrassed.
PS Here’s a link to a short article about Donald Trump bankruptcies from Forbes.
PPS. Here’s an article from the Washington Post that explains his first big bankruptcy, the Taj Mahal Casino, in detail. Trump points out that while a lot of banks, suppliers, and employees got hurt, Trump himself got out ok. I’ve also downloaded it from the Post, Trump’s bad bet here.
Trump said, “It’s not personal. This was just business,” he said. “I got out great.”
Comentários