Quote:
Originally Posted by MintJulep
He had ZERO executive or leadership experience. That is a fact.
He was elected because he is black. Anyone else with such a pathetic resume would have been laughed out of the country. You know it and I know it.
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Financial problems (1989–1997)
By 1989, the effects of recession left Trump unable to meet loan payments. Trump financed the construction of his third casino, the $1 billion Taj Mahal, primarily with high-interest junk bonds. Although he shored up his businesses with additional loans and postponed interest payments, by 1991 increasing debt brought Trump to business bankruptcy[12] and the brink of personal bankruptcy. Banks and bond holders had lost hundreds of millions of dollars, but opted to restructure his debt to avoid the risk of losing more money in court. The Taj Mahal re-emerged from bankruptcy on October 5, 1991, with Trump ceding 50% ownership in the casino to the original bondholders in exchange for lowered interest rates on the debt and more time to pay it off.[25]
On November 2, 1992, the Trump Plaza Hotel was forced to file a prepackaged Chapter 11 bankruptcy protection plan after being unable to make its debt payments. Under the plan, Trump agreed to give up a 49% stake in the luxury hotel to Citibank and five other lenders. In return Trump would receive more favorable terms on the remaining $550+ million owed to the lenders and retain his position as chief executive, though he would not be paid and would not have a role in day-to-day operations.[26]
By 1994, Trump had eliminated a large portion of his $900 million personal debt[27] and reduced significantly his nearly $3.5 billion in business debt. While he was forced to relinquish the Trump Shuttle (which he had bought in 1989), he managed to retain Trump Tower in New York City and control of his three casinos in Atlantic City. Chase Manhattan Bank, which lent Trump the money to buy the West Side yards, his biggest Manhattan parcel, forced the sale of a parcel to Asian developers. According to former members of the Trump Organization, Trump did not retain any ownership of the site's real estate - the owners merely promised to give him about 30 percent of the profits once the site was completely developed or sold. Until that time, the owners wanted to keep Trump on to do what he did best: build things. They gave him a modest construction fee and a management fee to oversee the development. The new owners also allowed him to put his name on the buildings that eventually rose on the yards because his well-known moniker allowed them to charge a premium for their condos.[28]
Trump was elected to the Gaming Hall of Fame in 1995.[29]
In 1995, he combined his casino holdings into the publicly held Trump Hotels & Casino Resorts. Wall Street drove its stock above $35 in 1996, but by 1998 it had fallen into single digits as the company remained profitless and struggled to pay just the interest on its nearly $3 billion in debt. Under such financial pressure, the properties were unable to make the improvements necessary for keeping up with their flashier competitors. Finally, on October 21, 2004, Trump Hotels & Casino Resorts announced a restructuring of its debt.[30] The plan called for Trump's individual ownership to be reduced from 56 percent to 27 percent, with bondholders receiving stock in exchange for surrendering part of the debt. Since then, Trump Hotels has been forced to seek voluntary bankruptcy protection to stay afloat. After the company applied for Chapter 11 Protection in November 2004, Trump relinquished his CEO position but retained a role as Chairman of the Board. In May 2005[31] the company re-emerged from bankruptcy as Trump Entertainment Resorts Holdings.[32]
Resurgence (1997–2007)
Trump has several projects under way. The level of success of the progress of the projects varies. The Trump International Hotel and Tower - Honolulu seems to be a success. According to Trump, buyers paid non-refundable deposits to commit to purchase every unit on the first day they were made available. Construction of the Trump International Hotel and Tower - Chicago seems to be proceeding as planned although 30% of the units remain unsold. The Trump International Hotel and Tower - Toronto has had a series of delays and a height reduction. The Trump Tower - Tampa has been quite controversial because the initial sales were so successful that all deposits were returned to charge a higher price. Three years after construction of this controversial development began, construction has delayed and lawsuits have been filed. In Fort Lauderdale, Florida one Trump construction project was put on hold in favor of another (Trump International Hotel and Tower - Fort Lauderdale). Meanwhile, Trump Towers - Atlanta is being developed in a housing market which has the nation's second-highest inventory of unsold homes.[33]
2008 financial crisis
Trump has been caught in the 2008 financial crisis as sales for his Trump International Hotel and Tower in Chicago have been lagging and he failed to pay a $40m loan to Deutsche Bank in December.[34] Arguing that the crisis is an Act of God, he evoked a clause in the contract to not pay the loan and initiated a countersuit asserting his image has been damaged.[34] Deutsche Bank has in turn noted in court that 'Trump is no stranger to overdue debt' and that he has twice previously filed for bankruptcy with respect to his casino operations.[34]
On February 17, 2009 Trump Entertainment Resorts filed for Chapter 11 Bankruptcy; Trump having stated on February 13 that he would resign from the board.[35] Trump Entertainment Resorts has three properties in Atlantic City.
Donald Trump - Wikipedia, the free encyclopedia
03-29-2011, 08:34 AM
Re: Donald Trump: I've got my birth certificate, where President Barack Obama's?
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