He first got involved with Atlantic City within the early 1980s and remained a presence until only some years ago. He once owned three casinos there—Trump Plaza, Trump Castle and Trump Taj Mahal. He reportedly didn’t invest much of his own cash, perhaps as low as $55 million.
Technically it’s true that he personally never went bankrupt, but his casino business did five separate times. Through complex processes of financing, bankruptcy and company restructuring, it’s unclear how much capital he was in a position to accumulate there and move to other investments.
“Atlantic City fueled numerous growth for me,” Trump said of ways the seaside town bankrolled him. “The money I took out of there has been incredible.”
According to a up to date report from CNNMoney, Trump made $39 million in salary, bonuses, options and other compensation from his time in Atlantic City, which might be the entire cash he was capable of gain directly from his years there, because, as an in-depth take a look at his former Atlantic City empire by PhillyMag.com points out, Trump didn’t dump his holdings in Atlantic City before they tanked. He lost all of it within the former gambling Mecca of the Northeast.
The last casino there that bears his name will close in October, despite being rescued from Chapter 11 bankruptcy by Trump supporter Carl Icahn, a billionaire businessman with an already existing interest within the city’s gambling industry.
There were financial problems for Trump while developing the Taj, as $500 million was spent at the casino and it wasn’t even with reference to opening. It took another $500 million to complete the project, which brought the entire debt at the casino to $820 million.
It eventually opened in April of 1990, however the financial problems had left Trump deep in debt and the Taj filed for Chapter 11 a year after opening.
According to The brand new York Times, in August of 1990, New Jersey regulators noted the “sheer volume of debt” on Trump’s holdings. The overall debt was $3.4 billion, which included $1.3 billion on three casinos and $832.5 million in loans personally guaranteed by Trump. Regulators said there has been “the possibility of an entire financial collapse of the Trump Organization.”
The result on the time was Trump losing half his interest in his casino business. He also needed to sell a personal yacht and plane to assist cover the losses.
Trump’s casino company itself, Trump Hotels and Casino Resorts Inc., filed for bankruptcy in 2004 with $1.8 billion in debt. This time Trump’s ownership was cut to twenty-eight percent. The corporate posted a loss annually it was public between 1995 and 2004.
It had become a penny stock.
After emerging from bankruptcy, the corporate was called Trump Entertainment Resorts. Trump’s stake was later reduced to simply 10 percent when the corporate filed for bankruptcy again in 2009 after losing $2 billion because the last bankruptcy.
He now not had any control over the valuables he once called “the eighth wonder of the world.” Still, it was clear that his brand was still worth quite a bit in Atlantic City.
The real estate tycoon’s net worth is a subject of much debate. He claims it’s “in excess $10 billion,” while Forbes, well known as a pacesetter in net worth calculations, pegged it at $4.5 billion. Bloomberg estimated it at $2.9 billion.
An investor who once had $500,000 worth of stock in Trump’s Atlantic City casino business, told the NYT that “people underestimated Donald Trump’s ability to pillage the company.” Perhaps nobody will ever know needless to say how much overall wealth he was capable of squeeze out of Atlantic City and invest elsewhere, similar to nearby Manhattan.
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