fatslob-:O said:
SpokenTruth said:
Trump filed Chapter 11 banktruptcy 4 times with his companies. Depending on how a company is organized, what personal assetts are held in equity and the arrangements made with the bankruptcy court, it can have a tremendous impact on personal wealth....or very little.
1. Trump Taj Mahal.
He screwed up big here because he financed it with junk bonds and personally guaranteed 50% in equity. 1 year after opening he had to sell his 50% stake, a 280 foot yacht and a private jet to cover the losses. All told costing him nearly $1 billion.
2. Trump Hotel Plaza.
He relinquished a 49% stake in the company which wasn't valued very much at that point anyway.
3. Trump Hotels and Casinos
He reduced his share from 47% to 27%. Again, stock value was already worth very little. He lost about $72 million.
The share reduction was required by lenders to give the company a lower interest rate and increased credit limit to $500 million which they would not give with Trump having majority ownership.
4. Trump Hotels and Casinos
Technically the 4th time this company is in bankruptcy as it's the parent company of Trump Taj Mahal and Trump Hotel Plaza.
Trump had been selling off shares leading up to this point and was forced to reduced it down to 10% as part of the restructuring and had to resign from the board of directors. He no longer operates the company in any capacity. They gave him a 10% share in the company to use his name though he tried to sue them 2 years ago to remove it (though he didn't want to relinquish the shares, he lost the lawsuit...hence they still use his name).
The first one hurt because he was stupid about how he financed it and then held 50% of it with his own equity. He didn't do that anymore and arranged to protect his wealth. He put far less effort into ensuring his companies were successful. 4 bankruptcies by pretty much the same company in 18 years is a damn horrible record.
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Aha! Now I've got it all figured out ...
You can't exactly pin a lot of the blame on him for the 4th bankruptcy because at that point he wasn't a part of the BoD for quite some time plus he was a minority shareholder way before that. All of these subsidaries were owned by Trump Entertainment Resorts and it was at the second bankruptcy in 2004 that he lowered his share to 27% so at that point he knew he had very little faith in that company by trying to lower his responsibilities every time ...
What was essentially 4 bankruptcies was 3 and arguably 2 if you took into account his faith and relative amount of shareholder responsibilities ...
Trump made some bad moves early on with the company he founded but at least he was smart enough to abandon a sinking ship known as Trump Entertainment Resorts ...
Had Donald Trump messed up his silver lining, The Trump Organization he would've been screwed so while his startup ended up as a spectacular failure his family owned business was kept in good condition and that is enough to rule out that he was a bad businessman in my book ...
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It's not just these examples of failure here.
Trump Vodka
Trump Airlines
Trump Mortgage
Trump: The Game
If it's your opinion that not screwing up the one successful business in his arsenal that was built by his daddy is sufficient to deem him a good businessman that is your prerogative, but I do not think you will find many whom will agree.
