Donald Trump's four bankruptcy filings, in detail
Donald Trump brags about how well his companies have done in bankruptcy. And in fact, none of the major American companies has made use of Chapter 11 more than Trump's casino empire in the last 30 years.
"I have used the laws of this country ... the bankruptcy laws, to do a good job for my company, for myself, for my employees and my family," he said during the first Republican debate on August 6.
Trump claims that successful businesses go bankrupt all the time. In the debate, he said that "practically everyone you read about on the covers of the business sections has used bankruptcy law."
But the facts do not support that comment.
Despite high-profile examples, including General Motors, Lehman Brothers, and most of the nation's major airlines, less than 20% of public companies with assets of $ 1 billion or more have filed for bankruptcy. in the last 30 years, according to data from Banktrupcy.com and S&P; Capital IQ.
Trump has never filed for personal bankruptcy. But he has declared four of his businesses bankrupt, something that, according to Bankruptcy.com, makes Trump the person who has done it the most in decades. The remarks focused on casinos he used to own in Atlantic City. All were Chapter 11 restructurings, allowing a company to stay in business while shedding what it owes to banks, employees and suppliers.
He is unapologetic about eliminating much of his debt. These moneylenders are not babies. They are real killers, ”he said in the debate. They are not sweet and nice people.
Here's a look at Trump's bankruptcy record.
Trump Taj Mahal, 1991
Trump's first bankruptcy filing was probably the most painful for him. To obtain the funds he needed, he sold a 85-meter yacht, as did Trump Shuttle, the airline that operated at the time and made trips between Washington, DC, New York and Boston, according to media reports at the time. . He had to give up half of his stake in the Trump Taj Mahal, but managed to retain control of the property. His largest creditor was financier Carl Icahn, who had $ 400 million in bonds. Now, Icahn is who Trump will appoint as Secretary of the Treasury if he wins the election.
Trump Castle Associates, 1992
In less than a year, he was back in bankruptcy court for the other casinos he owned in Atlantic City. This bankruptcy included the Trump Plaza Hotel in New York, the Trump Plaza Hotel & Casino in Atlantic City, as well as the Trump Castle Casino Resort. He gave half of his stake in the New York Plaza to Citibank, but withheld his stake in the casinos.
Trump Hotel & Casino Resorts, 2004
Trump did not return to bankruptcy court again until November 2004, when he petitioned to dispose of his debt from several Atlantic City casinos and from a riverboat in Indiana. This was another quick trip through bankruptcy court; the company shed $ 500 million in debt and emerged from bankruptcy in May of the following year. Trump handed over most of the control of the company to his bondholders, but he remained the largest sole shareholder, once again maintaining control of the casinos.
Trump Entertainment Resorts, 2009
His most recent bankruptcy filing for him came in 2009, after his company failed to make a bond payment of $ 53.1 million. That was mostly the end of the road for Trump in Atlantic City. While his name remained in three casinos, he resigned from the board and renounced his remaining stake in the company.
«I had good sense, and I have been given a lot of recognition in the financial pages; Seven years ago I left Atlantic City before it completely fell apart, ”he said during the debate.
The two Atlantic City casinos that still had Trump's name filed for bankruptcy once more in 2014. At the time, Trump made sure people knew that he was no longer running the company, and sued to have them removed. his name.
