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Donald Trump to join CB


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Not really but he has done it again.

 

http://www.ajc.com/business/content/busine...04/10trump.html

 

 

Trump Hotels to declare bankruptcy

 

Associated Press

Published on: 08/10/04

 

 

ATLANTIC CITY, N.J. — Trump Hotels & Casino Resorts plans to restructure under a bankruptcy protection plan that would strip Donald Trump of his majority stake in the debt-burdened company.

 

Under the plan announced late Monday, DLJ Merchant Banking Partners, an arm of Credit Suisse First Boston, and Trump would invest $400 million to help Trump Hotels & Casino Resorts pay down its $1.8 billion in debt and cut interest payments in half.

 

 

Donald Trump, the chairman, chief executive and largest shareholder, would see his stake in the company shrink from 56 percent to 25 percent, with Credit Suisse owning more than two-thirds of the company.

 

Trump himself would contribute nearly $71 million, $55 million of which would be in the form of a co-investment with Credit Suisse and $15.9 million of which would come from his Trump Casino Holdings notes. Trump would also give up trademark rights to his name and likeness for use in connection with casino operations.

 

"I look forward to our recapitalized company being a major player in the evolving gaming industry," Trump said in a statement.

 

The deal is expected to cut Trump Hotels' debt by $544 million to $1.25 billion, drop the average interest rate on debts from about 12 percent to less than 8 percent, and cut annual interest expenses by more than $110 million.

 

The company plans to enter Chapter 11 bankruptcy next month, emerging within a year. The restructuring plan is expected to be completed by first quarter of 2005, according to the company.

 

The company's $220 million yearly interest payments have been a drain, while a lack of cash has left Trump's three New Jersey casinos vulnerable to new competition, such as the Borgata Hotel Casino & Spa, the $1.1 billion gaming hall that has been siphoning gamblers since it opened a year ago.

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You know what, this guy is a real scumbag! I can't find the article right now but when I do I'll post it. It came out about 5 months ago when the casino was first hinting about some financial troubles. Basically the article said that Trump, transfered personal/other businesses debt into the casino corp. and then sold public stock in the casino to investors. There by transfering his waste to his investors and then he used PR to make it look like he was free and clear? He said he wasn't a majority owner anymore (sold his stock to people who trusted him) and since he wasn't in charge he couldn't control things and that's why the casino was failing. Total BS and once again investors have to pay his bills while he walks off scott free. He's a crook!

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You know what, this guy is a real scumbag! I can't find the article right now but when I do I'll post it. It came out about 5 months ago when the casino was first hinting about some financial troubles. Basically the article said that Trump, transfered personal/other businesses debt into the casino corp. and then sold public stock in the casino to investors. There by transfering his waste to his investors and then he used PR to make it look like he was free and clear? He said he wasn't a majority owner anymore (sold his stock to people who trusted him) and since he wasn't in charge he couldn't control things and that's why the casino was failing. Total BS and once again investors have to pay his bills while he walks off scott free. He's a crook!

 

 

I agree seems as if he waited the minimum time to file a bk, this is his wealth building skills.

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I would love to see how his personal CR reads. Even tho he's filing a biz BK, I wonder what his FICO score is? Imagine having a financial dream team making utlilization recommends :shock:

 

The Donald is not afraid of numbers, thats for sure. Really, what do you expect from a guy who has hair swooping out of an unknown 'part' on his head? If you can hide a 'part' in your head, you can hide anything.

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I doubt that his personal debts are anywhere near his biz debts.

 

according to the article, there is no seperation in "The Donalds" world and it's part of the reason that they had to secure financing at close to 20% rather then the more traditional 8% that is customary for this type of loan.

 

And I'm sure there are plenty of creditors who will lend him zillions no matter how many times he does a BK.

 

Not so sure, he's had trouble in recent years doing anything "monumental" but your right there are pleanty of "chimps" who will throw some moey his way.

 

I can't find the exact article but here's another good one that gives the correct motivations involved.

 

http://www.keepmedia.com:/Register.do?oliID=225

 

It's U.S. News and World Report so you may have to register.

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the link above is buggy so I'll post it here:

 

by Jodie T. Allen | Apr 12 '04

 

 

It's hard to feel sorry for the creditors of Trump Hotels & Casino Resorts. True, they have been pressing the cash-strapped firm to do something about its near $2 billion in debt, even mumbling darkly about a trip to bankruptcy court. But on the theory that hurt me once shame on you, hurt me twice shame on me, the only fingers they can justly point are at themselves. After all, no one made them back that same "top drawer" entrepreneur who, in the 1990s, stiff-armed another bunch of billion-buck bondholders, while wiggling out of personal bankruptcy. Yes, we are talking about the Donald, the self-proclaimed Artist of the Deal, now at new heights of fame as the firer-in-chief on the TV hit The Apprentice and author of yet another bestselling book with the modest title How to Get Rich. Clearly, the backers of his ventures over the years didn't read his books--or maybe they did.

 

"Don't blame the Donald, blame his underwriters and bankers," says Christopher Whalen, managing director of Institutional Risk Analytics, a financial research service. Whalen notes that Trump Hotels had to offer a sky-high 17.6 percent yield on its bond offering last March, a code-red warning for investors.

 

In the grand American tradition of buck-passing, Trump quite agrees that no fault should attach to him. "This has nothing to do with me," he told the New York Times recently. Never mind that he is chairman and chief executive, holds 49 percent of the stock, and has garnered millions of dollars in management fees and perks from the company and its Atlantic City casino holdings, even as he has rebuilt his personal real-estate-based fortune to well over $1 billion, by his own count.

 

Outside investors in his gaming halls have not been so lucky. Trump took the Trump Taj Mahal and Trump Casino through bankruptcy in 1991 but persuaded bondholders--including some major institutional investors--to restake him. Starting in 1995, he melded his casino holdings into the publicly held Trump Hotels & Casino Resorts. Wall Street pushed the stock above 35 in 1996, but by 1998 it had fallen into single digits as the profitless company struggled even to pay interest on its $1.8 billion debt, let alone make the investments needed to keep up with flashy new competitors like the Borgata.

 

"These money traps are no longer special, and the Donald is no longer a young bull," says Whalen. But Trump, whose executive vice president, Scott Butera, stoutly denied on CNN last week that Trump Hotels is near bankruptcy, is mightily resisting any effort to push his gaming properties into receivership, thereby wiping out the value of his stock. Adhering to another hallowed American tradition, he is threatening creditors with protracted litigation that would further erode, if not obliterate, any remaining value in the properties.

 

"Buffaloed." Under bankruptcy law, equity holders, being last in line among creditors, should have little if any say in the disposition of property. But, says Bruce Markell, Lee Professor of Law at the University of Nevada-Las Vegas, too often bondholders let themselves be "buffaloed" into compliance, especially when the buffalo in question has flashy horns like Trump's. "If you had a properly motivated opposition, bankruptcy law gives a plethora of options to combat that kind of obstinacy," Markell says. "If I were a creditor and felt a debtor in possession wasn't negotiating in good faith, I'd go to court and say, `Let him pursue litigation on his own dime,' and ask the judge to appoint a trustee."

 

And for all Trump's bravado, the marquee value of his moniker may be doubted. In recent years, Trump Hotels stock has traded at what Wall Street calls the Donald Discount--the drag effect simply associated with his name. Still, that hasn't prevented yet another sucker, er, investor from offering yet another bailout. An affiliate of Credit Suisse First Boston is reportedly offering a $400 million lifeline in return for a controlling stake and ouster of Trump as chief executive.

 

But why deplore this sorry tale? As Walter McDougall describes in his new history of America's founding years, Freedom Just Around the Corner, hustlers deserve a prime spot in our pantheon of economic heroes. Not, McDougall says, that we are "worse than other human beings. It is simply to acknowledge Americans have enjoyed more opportunity to pursue their ambitions, by fair means or foul, than any other people in history."

 

Kimberly Noland, a debt analyst for Gimme Credit, which tracks corporate bonds, thinks Trump may find it hard to hold on to his casino stake. Still, she says, "he's such a character. He keeps rising from the near dead--though it may not be so easy this time." Perhaps the moral of this latest chapter in the Trump saga is that we need more, not fewer, scalawags. So free Waksal! Exonerate Skilling and Ebbers! Let Kozlowski collect his art and Martha return to her cooking! We have nothing to lose but our shirts.

 

 

 

Copyright © U.S. News & World Report, L.P. All rights reserved.

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I don't see that "The Donald" is a crook or has done anything wrong.

He's acted just like a good capitalist and has worked to maximize his profits and minimize his risk.

Investors seeking out 17% yields knew what they were accepting a huge risk. In any business transaction, there is a risk to both lender an borrower and sometimes, those risk are realized.

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I don't see that "The Donald" is a crook or has done anything wrong.

He's acted just like a good capitalist and has worked to maximize his profits and minimize his risk.

Investors seeking out 17% yields knew what they were accepting a huge risk. In any business transaction, there is a risk to both lender an borrower and sometimes, those risk are realized.

 

Looking to invest? I have some swamp land just below the Brooklyn bidge you might be interested in?

 

:wink:

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That 17% yield in this sort of interest rate enviroment was a huge red flag. On this one, everybody got what they deserved.

I did love the quote in the U.S. News article that he's no longer a young bull! :shock: He'll likely sue somebodys flowers for that. :evil:

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The key in all of this is the Trump brand. In the end, I think it's possible another major casino corporation could come in, revitalize the company, and grow the brand. Keep Trump on as your image man, give him a seat on the board, and let it roll.

 

Rumor has it Trump will build a timeshare/hotel resort in Las Vegas in the very near future, somewhere near the Stardust. I wouldn't be surprised if Trump is working to wiggle himself into the lucrative LV Strip and often wonder why it hasn't been done already. Imagine what Trump could do on the Strip. He'd certainly give Steve Wynn and Kirk Kerkorian a run.

 

Again, in the end, I see this is the hands of a growing gaming entity like Boyd, Station or Coast. And, if the Mandalay-MGM or Harrah's-Ceasars deals fall through, I'd imagine any of those companies looking at a Trump buy.

 

Just like Harrah's buying the Horseshoe and WSOP brands, the Trump brand would be a biggie. Harrah's already plans a Horseshoe resort on the strip. Imagine a themed Trump resort.

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The key in all of this is the Trump brand. In the end, I think it's possible another major casino corporation could come in, revitalize the company, and grow the brand. Keep Trump on as your image man, give him a seat on the board, and let it roll.

 

Rumor has it Trump will build a timeshare/hotel resort in Las Vegas in the very near future, somewhere near the Stardust. I wouldn't be surprised if Trump is working to wiggle himself into the lucrative LV Strip and often wonder why it hasn't been done already. Imagine what Trump could do on the Strip. He'd certainly give Steve Wynn and Kirk Kerkorian a run.

 

Again, in the end, I see this is the hands of a growing gaming entity like Boyd, Station or Coast. And, if the Mandalay-MGM or Harrah's-Ceasars deals fall through, I'd imagine any of those companies looking at a Trump buy.

 

Just like Harrah's buying the Horseshoe and WSOP brands, the Trump brand would be a biggie. Harrah's already plans a Horseshoe resort on the strip. Imagine a themed Trump resort.

 

I know nothing about the gaming board in LV but if their even 1/2 ligit I would think that mr. trump would have an issue getting a gaming license after having 2 BK's to his name?

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With Trump out as CEO, no longer having a majority stake, I think that resolves that issue. My guess is by the time Vegas becomes a reality, Trump's only ties will be a seat on the board, with a job as ambassador or something to that effect.

 

Thus, Harrah's, Mandalay, MGM, Boyd, etc., would be applying for the gaming license and not Trump. Trump's name would be all over the place and perhaps his resources used in construction.

 

As for legit gaming board, hell, they approved two former dot-commers to buy the Golden Nugget -- despite alleged mafia ties.

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With Trump out as CEO, no longer having a majority stake, I think that resolves that issue. My guess is by the time Vegas becomes a reality, Trump's only ties will be a seat on the board, with a job as ambassador or something to that effect.

 

Thus, Harrah's, Mandalay, MGM, Boyd, etc., would be applying for the gaming license and not Trump. Trump's name would be all over the place and perhaps his resources used in construction.

 

As for legit gaming board, hell, they approved two former dot-commers to buy the Golden Nugget -- despite alleged mafia ties.

 

That's right, the ones who have that reality show! They have Mafia ties?

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the link above is buggy so I'll post it here:

 

by Jodie T. Allen | Apr 12 '04

 

 

It's hard to feel sorry for the creditors of Trump Hotels & Casino Resorts. True, they have been pressing the cash-strapped firm to do something about its near $2 billion in debt, even mumbling darkly about a trip to bankruptcy court. But on the theory that hurt me once shame on you, hurt me twice shame on me, the only fingers they can justly point are at themselves. After all, no one made them back that same "top drawer" entrepreneur who, in the 1990s, stiff-armed another bunch of billion-buck bondholders, while wiggling out of personal bankruptcy. Yes, we are talking about the Donald, the self-proclaimed Artist of the Deal, now at new heights of fame as the firer-in-chief on the TV hit The Apprentice and author of yet another bestselling book with the modest title How to Get Rich. Clearly, the backers of his ventures over the years didn't read his books--or maybe they did.

 

"Don't blame the Donald, blame his underwriters and bankers," says Christopher Whalen, managing director of Institutional Risk Analytics, a financial research service. Whalen notes that Trump Hotels had to offer a sky-high 17.6 percent yield on its bond offering last March, a code-red warning for investors.

 

In the grand American tradition of buck-passing, Trump quite agrees that no fault should attach to him. "This has nothing to do with me," he told the New York Times recently. Never mind that he is chairman and chief executive, holds 49 percent of the stock, and has garnered millions of dollars in management fees and perks from the company and its Atlantic City casino holdings, even as he has rebuilt his personal real-estate-based fortune to well over $1 billion, by his own count.

 

What a quote! Basically, don't hate the player hate the game.

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With Trump out as CEO, no longer having a majority stake, I think that resolves that issue. My guess is by the time Vegas becomes a reality, Trump's only ties will be a seat on the board, with a job as ambassador or something to that effect.

 

Thus, Harrah's, Mandalay, MGM, Boyd, etc., would be applying for the gaming license and not Trump. Trump's name would be all over the place and perhaps his resources used in construction.

 

As for legit gaming board, hell, they approved two former dot-commers to buy the Golden Nugget -- despite alleged mafia ties.

 

You got that right! The gaming control board has the right to restrict or license just about anyone they want. There are as crooked as a dogs hind leg.

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What a quote! Basically, don't hate the player hate the game.

 

Funny isn't it LOL!!

 

I think the bigger point though is that his investors were dopes, some say yes, some say no. They trusted him and now their getting burned. Seems to be a pattern with this guy! I think the author is saying "hey they're the salamanders who lent him the money, what did they expect"? Not so sure if I agree with so cavilerly dismising an investors right to fair fuduciary responsibility by a CEO, but I understand the point.

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There is the story about the snake that asked a hiker to carry him across a deep stream. The hiker protests saying that the snake will bite him. "No" says the snake, "I have no reason to bite you". So the hiker picks up the snake and wades across the stream. As soon as he reached the other side he placed the snake on the ground. Immediately the snake bites the hiker. "Hey, you snake! You said you wouldn't bite me!". The snake replies "What'd you expect? You knew I was a snake when you picked me up!"

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They have Mafia ties?

 

Alleged! I guess the new owners got a two year provisional license. Gaming board says they have/had relations with people that they considered unsavory.

 

I'm sure with Trump's wrangling, he could secure a gaming license. He's got the money to buy the gaming board off and his overall company has the ability to position itself with a lucrative offer to Nevada.

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You got that right! The gaming control board has the right to restrict or license just about anyone they want. There are as crooked as a dogs hind leg.

 

FRIVOLOUS....TRUMP TOWER VEGAS will NOT have a CASINO...

 

Hmmmmm.....perhapes the powers that be here in Las Vegas really don't want DT as an equal?

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Hmmmmm.....perhapes the powers that be here in Las Vegas really don't want DT as an equal?

 

no, trump corp did not include casino from the get go. you'll have to ask trump ent. why they did not want one. they will have HIGH END CONDOS...in fact those go on sale soon...we are going to look at them...

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