Trump Cuts A Casino Deal

Posted by: Chris Palmeri on November 17, 2009

He’s back. After seeing his New Jersey casino empire slide into bankruptcy for a third time, real estate baron Donald J. Trump has returned to the table.

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As part of a deal cut with bondholders and announced today, Trump will receive a 10% stake in a newly recapitalized company, which owns three casinos in Atlantic City that carry the Trump name.

In exchange Trump and his daughter Ivanka, both former board members, agreed to drop a lawsuit they had against the company. Trump will be free to use his name on other gambling ventures, just not in five neighboring states.

Trump left the board of Trump Entertainment Resorts in February. It is struggling under $1.7 billion in debt. “I have always felt a tremendous responsibility to New Jersey, and especially to Atlantic City,” he said after cutting this new deal.

Others parts of Trump’s empire—wobbly though it may be—continue to grow. The Trump Waikiki hotel opened this week in Hawaii and the Council on Tall Buildings and Urban Habitat just recognized his Trump International Hotel and Towers in Chicago as the sixth largest building in the world thanks to a new way of measuring skyscrapers. Previously they were measured starting with the front entrance, but since many buildings have multi-level entrances, the new standard is the lowest pedestrian entrance.

Reader Comments

dennis

November 17, 2009 8:33 PM

Trump is a gamer he never paid taxes to NJ on any of his casonos from what i read not bad to be rich and not live up to your taxes lets thank bill gates and buffett at least they give their money away.

milt

November 18, 2009 1:44 AM

I am just always amazed that these guys can get massively rich when these ventures succeed and yet walk away from the rubble relatively unscathed when they don't.
Trump and billionaires like him certainly know how to hide behind that corporate vale.
SO your casino empire has tanked for the third time. No problems, fold it, screw the creditors and do it all over again (Unless you're James Packer who seems to lose his own money on casino ventures)

BigDually

November 18, 2009 8:10 AM

Who in their right mind would ever loan this guy another scheckel? ... and btw, can we just stop the I wanna be like Donald Trump, hes a great guy, multimedia assault on our senses? The US Economy cant afford any more Donald Trumps

Seeer

November 18, 2009 8:25 AM

Trump represents the prevailing US management style. Fluf and BS over substance, if you can't make it, fake it. Take care of yourself and tell everyone how great you are. Make sure everyone else gets hurt and never risk your own money. No wonder the US is in the mist of not a depression but a collapse. Couple a fifteen percent sales tax decline with a twenty percent drop in the value of the dollar and you have a true view of the US economy, a thirty five percent drop. 22% real unemployment, with 20% gross underemployement. All are going to lose shortly in this situation.

Seeer

November 18, 2009 8:25 AM

Trump represents the prevailing US management style. Fluf and BS over substance, if you can't make it, fake it. Take care of yourself and tell everyone how great you are. Make sure everyone else gets hurt and never risk your own money. No wonder the US is in the mist of not a depression but a collapse. Couple a fifteen percent sales tax decline with a twenty percent drop in the value of the dollar and you have a true view of the US economy, a thirty five percent drop. 22% real unemployment, with 20% gross underemployement. All are going to lose shortly in this situation.

Earl Barnett III

November 18, 2009 1:06 PM

I agree with you Milt. Just amazes me as well, when a venture doesn't pan out, guys like, Trump walk away. But if a venture is successful, then Trump reaps the rewards.

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Jay

February 11, 2010 1:13 AM

its amazing how Trump stayed afloat even after the blows on the property market

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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