Donald Trump whose base is not politics and his business acumen is good because of his smart acts. He has bankrupted his companies for four instances of corporate bankruptcy in a row, records shows a total of six till now. The heated argument in the first president debate ,which will be happening two more time to November election , proved that Trump hasn’t at all been a smart president for USA . Lauding claims and gaffes about himself , he wasn’t ready for sharing the onstage and he cut off Democratic Nominee on her every remarks. The mystery still remains of how rich this man untracked for many times he was grilled from his first face off to GOP presidential debate for the 2016 season about the most recent Chapter 11 filing.
He is a man who kills people from jobs and goes into debts and again restructures with the refinance from other corporates.
When something is filed for chapter 11, the company can run ,can make money and employees still get their share, they may reduce the debt . The corporation must develop a repayment plan and corporate budget. Both must be approved by the creditors and by the bankruptcy court.
There is a difference between personal and corporate bankruptcy. Trump hasn’t been risked personally for finance but taken the advantages of laws to sought bankruptcy protection for the business he controlled.
Over 2 decades now, his companies went into restructuring five times in New Jersey and once in Newyork.All these bankruptcies were connected to the struggle of over-leveraged casinos.
Trump Taj Mahal Associates, Atlantic City casino — 1991
The first bankruptcy hit the so referred good businessman very badly. He had funded the construction for $1 billion in 1990 at an interest rate of 14 percent .A year later ,trouble sought when he had $3 billion in debt. As a result, Trump’s corporation filed for Chapter 11 bankruptcy. The casino kept operating but Trump had to sell out his yacht and airline for loan payment. This first bankruptcy was the only time when his personal fortune was at the verge of destruction.
Trump Castle Hotel & Casino, Atlantic City casino — 1992
Just after a year of his TajMahal Bankruptcy he underwent in bankruptcy court again for Trump Castle, which opened in 1985. Trump gave up his 50 percent share in the casino for lower interest rates on $338 million worth of bonds.
Trump Plaza Associates, Atlantic City casino — 1992
The Trump Plaza Hotel and Casino in Atlantic City, which opened in 1984, declared bankruptcy at the same time as the Castle. A $210 million joint project of Trump’s and Harrah’s, the casino had racked up $250 million in debt by 1992, after a staggering 80 percent decline in cash flow. So Trump Plaza filed for prepackaged bankruptcy that spring as well.
Plaza Operating Partners, Manhattan hotel — 1992
Trump filed bankruptcy on another Plaza, in New York in the year 1992 when his Trump Plaza Associates, Atlantic City casino was filed . Trump purchased the Plaza Hotel in Midtown Manhattan for $390 million in 1988, but it racked up more than $550 million in debt by 1992. As part of the restructuring, Trump gave Citibank a 49% interest in the hotel .Trump remained as CEO but he had to give up his salary.
Trump Hotels and Casinos Resorts Atlantic City casinos — 2004
Trump Hotels and Casino Resorts filed for bankruptcy in 2004,this was one of the publicly traded company. The corporation had $1.8 billion dollars of debt. Trump reduced his share in the company to 25% to get other lenders to share the rest debts . The corporation received lower interest rates and another loan to upgrade the entities.
Trump Entertainment Resorts, Atlantic City casinos — 2009
Trump Hotels and Casino Resorts filed for bankruptcy in 2004,formerly Trump Hotels and Casinos Resorts . It went with a debt of $1.2 billion. Trump heated discussion with his board of directors on the repayment plan so he reduced his ownership share to only 10% and resigned from the chair board.
Donald Trump has been leading into business with many flaws . Though the other projects he had built an empire had not resulted in bankruptcies .Of his ever growing empires,whether that may be connected to him only in regards to licensing agreements and not directly run or controlled by him, citing 6 such failures out of more than 515 big business deals can’t sum up his business world .Not to forget his share on the reality TV (Apprentice) ,which was a great success. Bankruptcy gave Donald Trump a fresh deal ,but it has questioned big investors on the string of failures who had played this insolvency at least for one time in their life.