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Donald Trump's Bankruptcy

Written by: Kim Hamilton

Article Overview: Donald Trump has, to some extent, become a business icon. He knows more about the business world than most and has famously turned himself into a self-made billionaire. So, how is it that Donald Trump has repeatedly filed for bankruptcy, and yet he’s still as rich and successful as ever? His most well-known financial scandal would have to be the fact that he brought his casino into bankruptcy not once, but twice. Clearly, led him into serious debt, although it seems that he’s taken it well.

Donald Trump's Bankruptcy

Donald Trump has, to some extent, become a business icon. He knows more about the business world than most and has famously turned himself into a self-made billionaire. So, how is it that Donald Trump has repeatedly filed for bankruptcy, and yet he’s still as rich and successful as ever? His most well-known financial scandal would have to be the fact that he brought his casino into bankruptcy not once, but twice. Clearly, led him into serious debt, although it seems that he’s taken it well.

In his early years, Donald Trump’s business savvy served him well, as he bought and converted many buildings, including apartment structures and the Javits Convention Center, profiting millions of dollars. This was a successful way for the business icon to start out his career. However, after some recession in the late ‘80s, he began to struggle with making payments on loans, and had difficulty picking himself up again after this financial strain. His casino business filed for bankruptcy, and he was on the brink of becoming bankrupt as well. Donald Trump eventually decided to reorganize his debts, and allowed himself to become only a partial owner of the company. This wasn’t necessarily a bad business move though. Because he only had partial ownership, he could pay off the debts at a more reasonable rate, with less interest, and didn’t have to worry about losing more money through lawsuits in court. Ultimately, the Taj Mahal Casino mainly became the property of other corporations, and Donald Trump had minimal input or power over the situation. However, after some time, the casino triumphed again and the stocks began to rise.

One of the main reasons why this bankruptcy didn’t effect Donald Trump as poorly as it could have is because he stays uninvolved personally. Immediately after it was evident that his business was failing, he sold most of the ownership, thus saving him from paying various debts, and protecting him from multiple lawsuits. Whenever Donald Trump is experiencing financial difficulties, he attempts to take any blame off of him. This is a smart business move. It’s not that he’s staying uninvolved, but instead, he’s just taking the situation, and making it beneficial for him. Also, by doing so, it means that the company files for bankruptcy, and not Donald Trump himself.

Just a few years later, the Trump Hotels and Casino Resorts experienced another fall in their stocks. Again, Donald Trump turned around a second bankruptcy by yet again, reevaluating the debts, and overhauling the entire company. Because of this overhaul, he was able to keep up with competitors. Also, he made a deal which allowed the other partial owners of the company to gain stocks in the corporation, as long as they forgave some of the company’s debts. This would allow them to own even more of the company, gain more money once the stocks rose, and would help to clean up Donald Trump’s reputation. All in all, Donald Trump’s business savvy has helped him to keep his job, and turn around numerous companies, saving them from succumbing to failure. As long as he keeps doing what he’s doing, he’s going to come out of top and will continue to be known as a huge success.

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  Donald Trump Bankruptcy
  Perception and Reality
  Biography of Donald Trump
  When Should I Consider Filing for Bankruptcy?
  Donald Trump Book

Article Tags: 80s, bad business, bankruptcy, billionaire, brink, business icon, business move, business savvy, business world, casino business, debts, donald trump, financial scandal, javits convention center, lawsuits, minimal input, recession, t effect, taj mahal, taj mahal casino



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