Trump Hotels and Casinos file for bankruptcy in hope of restructuring for the future
Thursday 12th August 2004
A surprise progression in the career of Donald Trump was announced yesterday- Trump Hotels and Casinos are to file for bankruptcy by the end of September. This company is the main branch of Trump’s casino interests, and has been proving unsuccessful for a long time. Faced with their performance since going public in 1995, the company now sees the next inevitable step to be this bankruptcy filing.
The casino company is currently facing debts of US$1.8 billion. As part of the bankruptcy proceeding Trump will resign as chief executive of the company, and diminish his stake in the company to approximately 25 percent- currently he holds a 56 percent stake. The condition of maintaining the pared down ownership, is that Trump will input US$55 million in cash into the failing company, and take on the debts of the Trump Hotels debts for those sites he owns.
The aim of this step is that the company will restructure and be able to refinance itself, in order to start tackling the problems and debts it faces. Although Trump will no longer be Chief Executive, he will stay on as Chairman of the revised company, and grant rights for that company to continue to use his name and likeness, without the usual accompanying royalty fees.
A surprise progression in the career of Donald Trump was announced yesterday- Trump Hotels and Casinos are to file for bankruptcy by the end of September. This company is the main branch of Trump’s casino interests, and has been proving unsuccessful for a long time. Faced with their performance since going public in 1995, the company now sees the next inevitable step to be this bankruptcy filing.