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Another day, another Donald Trump-related financial crisis.After years of financial problems, Trump Entertainment Resorts (NASDAQ: TRMP) has filed for bankruptcy for the third time in its history. The company's last bankruptcy came in November of 2004.
The company reported assets of less than $50 million and debts of less than $500 million. Nine affiliates of the company also filed for bankruptcy, including Trump Plaza Associates, Trump Marina Associates and Trump Taj Mahal Associate. Including all affiliates, the company said it had consolidated assets of $2.1 billion and debt of $1.7 billion as of December 31st of 2008.
A 7.8% decline in Atlantic City gambling revenues sent the company into crisis mode, but the large debt load and competition from more modern hotel-casinos hurt its competitive position too.
True to form, Trump extricated himself from the company a few days before the bankruptcy filing and, in spite of all the cash he collected at shareholders' expense, doesn't seem to accept any responsibility. Instead he has publicly blamed the company's creditors.
Shares of Trump Entertainment Resorts are now essentially worthless. In 2006, the stock traded at more than $20 per share.
True to form, Trump extricated himself from the company a few days before the bankruptcy filing and, in spite of all the cash he collected at shareholders' expense, doesn't seem to accept any responsibility. Instead he has publicly blamed the company's creditors.
Shares of Trump Entertainment Resorts are now essentially worthless. In 2006, the stock traded at more than $20 per share.
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Reader Comments (Page 1 of 1)
2-17-2009 @ 8:33AM
BHarrison said...
Well the TR(A)MP finally collapsed under the weight of all of that debt . . . "The Donald" is a combination of "Barnum and Bailey", and Madoff type schemes. While we hate to see any business enterprises go bankrupt, Donald's "empire" probably deserves it more than most. I could NEVER figure out why ANYONE would invest in a Trump business venture because of his history of bankrupcies and/or losses to other investors. The investors "deserve" no more than they will be getting. Heck, Madoff's Ponzi scheme looked better than most Trump business deals . . . and these people STILL INVESTED in these extremely shaky ventures . . . go figure that out.
The con men, wheeler-dealers like Donald just cannot survive in tough economic times. I, for one, will not shed a tear for Donald . . . in fact it will be nice to not have to see him on TV or hear his annoying, egotistical comments. The man has always been a total FRAUD.
2-17-2009 @ 8:47AM
Brian said...
As usual, Donald Trump will not accept responsibility for his newest bankruptcy. It is now the creditor's fault that the Combover Bastard is such a screw up in business. Yet, there are still people who think he is such a great and successful businessman, when in fact, he is a total failure in business. No wonder The Donald wasn't the favorite child of his parents, Fred and Mary Trump.
Donald Trump (or Trump as call everything you own and run), you are FIRED! Take your combover, your mannish looking wife, your equally pompous offsprings, and anything that has Trump on it and get lost!
2-17-2009 @ 9:06AM
MrsB said...
How in the hell is Donald Trump able to legally file bankruptcy against millions of dollars of debt and none of us can file bankruptcy against the Student Loan division that is withholding our wages and tax refunds. My $3,000 student loan turned in $11,000 over the years and they have offset over $6,000 in the past two years. I can barely feed my child now and am living on welfare. It is an unjust system that protects those with money or status. I can't stand Donald Trump-he's such a crook.
2-17-2009 @ 9:08AM
BHarrison said...
"Trump is 'blaming his creditors'"?
Now that is a novel idea, that only a guy like Donald could convolute. "Creditors" are NOT "investors"; they are companies who have provided goods and services and rightfully expect to be paid within a reasonable amount of time (within the terms of payment).
The monies owed by Trump are the cash flow economic life blood of these vendors and service providers. And these people normally do not press for bankruptcy actions until the situation reaches a dire point.
"The Donald" obviously doesn't consider these goods and service companies claims (invoices) to be anything more than "investors monies" which certainly is NOT the case. These companies are not in "partnership' with Trump; and they rightfully expect to be paid for their goods and services. Thereis no legitimate basis for Trump to expect these companies to "subsidize his business cash flow problems" . . . they are NOT "partners" in Trumps ventures.
Trump would obviously like to treat them like "partners"/investors when it comes to losses; but not profits. Trump is delusional and corrupt. He definitely knows what he has done, and has tried to take advantage of all of these companies. Now when the economic ceiling starts to buckle and cave in, Trump "resigns" . . . rather gives up and runs away. That just demonstrates that in the future a company is a fool to "ride with him on anything about late payments".
Trump is killing what little there may be left of an "image" of him being a wheeler - dealer. He is becoming a " phony has been" like Madoff. The construction world will be a better place without the likes of "The Donald".
2-17-2009 @ 9:48AM
e breitburg said...
send him to a flophouse; he has no money, never did, and never will. He's pure BS. Trump is a clown.
2-17-2009 @ 5:47PM
sojka027 said...
Donald YOU WILL LOOK SO MUCH BETTER WITH SOMETHING IN YOUR MOUTH ...
2-18-2009 @ 1:11AM
Peter Triestman said...
Trump can now invade Nepal and Outer Mongolia, the only places on earth that have not seen him scam investors yet. Nepal needs a Trump Tower.
No civilized investors on this planet will fall again for his obviously hair-brained business acumen, screwing up every operating position he has ever had since the early 1970's.
Give him something constructive to do. Let him hawk Viagra, and show off his towering edifice. They should be willing to pay him some money to be their spokesman.