Posted on 11/22/2004 7:43:04 AM PST by edcoil
Trump's Casinos File for Bankruptcy Email this Story
Nov 22, 7:53 AM (ET)
Hey Donald,
Nice job... Would you allow one of your rookies to do this to one of your companies?
PHILADELPHIA (Reuters) - Donald Trump's casino operations filed for bankruptcy Sunday in a long-expected move that would allow the real estate maverick to restructure the company's debt and overhaul its aging casinos.
Trump, the developer who flaunts his brusque business style on "The Apprentice" reality television show, last month clinched a restructuring pact with bondholders that would cut his stake in the company but preserved his role as chairman and chief executive.
Under the voluntary bankruptcy filing, Trump Atlantic City Associates, which is 99 percent owned by Trump Hotels & Casino Resorts Inc., listed $1.3 billion in debt and $1.5 million in assets. It marks the second bankruptcy for Trump's casino empire.
Couldn't look more fake if it had a chin strap.
PHILADELPHIA (Reuters) - Donald Trump's casino operations filed for bankruptcy Sunday in a long-expected move that would allow the real estate maverick to restructure the company's debt and overhaul its aging casinos.
I cannot help but believe that Trump is performing a sophisticated financial maneuver that will make him even richer at the expense of someone else.
Exactly.
(The really great men are always simple and true)
I would bet Trump is pulling out the Kmart play book. Kmart gave the shaft to the shareholders even though the asset out weighed the liabilities enough to buy Sears.
Unless there's someone willing to merge their successful operations with his unsuccessful operations I highly doubt it.
Kmart gave the shaft to the shareholders even though the asset out weighed the liabilities enough to buy Sears.
Acquisitions have almost nothing to do with asset/liability ratios. The merger consideration for the Kmart/Sears transaction was $11B in value. As of today, Kmart has $11B in liabilities and $11.2B in assets. The excess of book assets to liabilities is less than 2% of the total. This $200M in excess would represent only pennies per share.
In other words: If I were a Sears employee I wouldn't be very happy today?
But I don't think the usual downsizing that follows such mergers will be particularly pronounced.
More like 4000% actually.
See post 15.
If you borrow $100,000 the bank owns you. If you borrow $1 billion, you own the bank.
Last week's episode featured a scene where the Donald in his limo calls his secretary and tells her to cancel all his appointments for the rest of the day, he was going to meet with his potential apprentices. That show is so scripted, I had to laugh.
I note that his right hand man, George, is more and more away on business trips. I also heard that George had to sue last year to get paid for his appearances on the show.
And your impression is correct - I've met him in person unfortunately, and he's a joke.
Maybe I don't know $#!+ from shinola, but how the heck do you go broke running a casino? I thought that was sort of a license to print money?
Also, if you go to AC you'll see that his facilities are full of the elderly and Spanish-speaking day laborers.
The Borgata is full of European tourists and young professionals.
Thanks. It would seem that if you want people to lose money to you, you'd best go after those who have some.
His properties in NY are known for having fairly cheap construction and lots of cut corners.
Trump buys property in a sexy location and then markets the hell out of it while at the same time saving as much money as he can on the construction costs.
I heard this weekend that a few years ago he and his daughter were walking along and passed a street bum. Donald said to his daughter to to pity the man too much as the guy was about 400 million richer than her daddy. Supposedly he was $400 million in debt at the time.
That's always been my view more or less. I'm $1.8 billion richer than this clown because I don't have the debt. Why would anyone want to take business advice from a guy who can't pay his bills? I know that in my little home improvement business customers will occasionally want to check my credit report before agreeing to do business with me - so why would anyone want to write a check to "The Donald"?
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