Posted on 08/09/2004 7:30:48 PM PDT by fhayek
On Drudge now, Siren up.
What else is new? He'll screw all the little people and companies he owes money to and just start a new company as explained in the article. You think this is going to hurt Trump one iota? It ONLY HURTS THE WORKERS AND INVESTORS.
Didn't he file bankrupcy once before?
Trump is the best.
He could sell tampons to Wilt Chamberlain!
Those who laughs last, laughs best! LOL
I think so.
LOS ANGELES (Reuters) - Trump Hotels & Casino Resorts Inc. (NYSE:DJT - news) on Monday said key bond holders had agreed to take the company into voluntary bankruptcy and restructure its $1.8 billion in debt to get a $400 million capital infusion.
Donald Trump, the real estate developer and star of reality show "The Apprentice" appeared poised to use his trademark line "You're fired!" on himself as chief executive and to cut his controlling stake to 25 percent if the deal with debt holders and a Credit Suisse First Boston equity fund goes through.
CSFB's DLJ Merchant Banking Partners III will co-invest $400 million with Trump and take a majority stake.
Trump will remain chairman of the company, which owns four casinos, including the Taj Mahal in Atlantic City, and has been seeking for months to restructure its debt.
It has come close to defaulting on interest payments in the process, although that did not threaten the developer's non-casino real estate projects, which are held separately.
A significant amount of casino bond holders had agreed to swap $1.8 billion in debt for $1.25 billion in new 10-year publicly traded debt and a mix of cash and stock in the new company.
The annual interest rate will fall to 7.875 percent from an average of approximately 12 percent, and the company said it would be able to secure up to $500 million in new financing.
Stockholders will have the right to buy new shares in a rights offering, which will leave shareholders other than Donald Trump with between 0.1 percent and 4 percent of the new company.
"The Company intends to effect the transactions in a Chapter 11 (bankruptcy) proceeding pursuant to a pre-negotiated plan of reorganization in order to implement the Recapitalization Plan in an efficient and timely manner," the company said.
It aims to begin the filing by the end of September and end in the first quarter of 2005.
Trump himself will invest $55 million in the new company with CSFB and $15.9 million in notes. He would also receive land in Atlantic City and his real estate firm would get the right of first offer to serve as contractor for new development.
The restructuring will cut the company's annual cash interest expense by about $110.2 million. http://news.yahoo.com/news?tmpl=story&cid=568&u=/nm/20040810/bs_nm/leisure_trump_dc_2&printer=1
Trump is just a con artist, that's all. He BSed his way out of his last bankruptcy in the early 1990s.
If a property speculator could not make money during the Bush years with record low interest rates the man deserves to go bankrupt, maybe they will take that hair with the settlement.
I'm sure it's Bush's fault.
Mr. Trump, the bottom line is you lost money and didn't turn a profit. So, I think you need to fire yourself.
What a loser. Art of the comeback my a$$.
I don't see how any casino can go broke. Think about it. It is the only business with a gauranteed profit. The house always comes out on top.
I think he's typical of many who declare bandruptcy --- it's just a scam to that type. The get hopelessly in debt, declare bankruptcy, keep things they shouldn't be allowed to keep and start all over. I doubted he was as rich as he claims to be --- just as I doubt the Hiltons are --- when they had to try to sell themselves on tv as some sort of celebrities.
The way I remember it these casinos always operated under a shadow due to huge debt and obligations... Which were assumed when Trump had a cash flow crisis circa 1991.
Plus traffic has been down in recent years due to newer places in Atlantic City.
It's a technique he's used for many years.
1.8 Billion Debt ?? He should fire himself.
The harbor master is largely unconcerned with the direction of the tide - only its amplitude.
yep, in NY Daily News... One month ago today...
Trump slams Bush on Iraq
President Bush, you should be fired.
The Donald has turned thumbs down on the President's war in Iraq, calling it a "mess."
"What was the purpose of the whole thing?" Donald Trump asks in an Esquire interview. "Hundreds of young people killed. And what about the people coming back with no arms and no legs?"
"The Apprentice" star said it's folly to think Iraq can be turned into a "wonderful democracy."
The real estate baron said if he were President, Al Qaeda leader Osama Bin Laden "would have been caught long ago."
"Tell me, how is it possible that we can't find a guy who's 6-foot-6 and supposedly needs a dialysis machine?" Trump said. "Can you explain that one to me? We have all our energies focused on one place - where they shouldn't be focused."
Trump, a Republican, has flirted with the idea of running for President.
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