“Also, I’d bet a lot of the note holders in his various corporate bankruptcies and defaults weren’t so happy.”
A legal opinion:
Law Dictionary: How is Donald Trump Able to File for Bankruptcy So Many Times? The answer is HE DIDN’T!
http://thelawdictionary.org/article/how-is-donald-trump-able-to-file-for-bankruptcy-so-many-times/
Written by James Hirby | Fact checked by The Law Dictionary staff
People might ask “How is Donald Trump able to file for bankruptcy so many times?” The answer is “He didn’t.” Trump himself has never filed for bankruptcy. His corporations have filed for Chapter 11 bankruptcy four times. By filing for Chapter 11 bankruptcy, the corporation is allowed to continue running while restructuring and reducing its debt. By allowing the business to continue, employees still have their jobs and the business is still making money. Corporate debts still need to be repaid but they may be reduced. The corporation must develop a repayment plan and corporate budget. Both must be approved by the creditors and by the bankruptcy court.
The creditors in the bankruptcies were given equity in place of actual fixed value debt instruments. Folks who buy debt instruments of corporations are not interested in equity. Debt instrument provide regular income, preservation of capital, and liquidity.
In the case of the trump shuttle, trump just defaulted, and the creditors took over. Again, that is not what the creditors were looking for when they loaned trump’s shuttle money.