Here’s more fallout from the economy bubble…:
He is known as a successful entrepreneur to the millions who watch him on the US version of The Apprentice but Donald Trump on Tuesday suffered the indignity of watching a company that bears his name file for bankruptcy protection.
Trump Entertainment Resorts, of which Mr Trump owns 28 per cent, filed for Chapter 11 protection at a court in New Jersey on Tuesday after bondholders who control the debt-laden casino operator rejected Mr Trump’s attempt to take the company private.
The filing came as the group missed its last deadline on a $53m interest payment. It is not the first time the group has filed for Chapter 11: four years ago, an earlier incarnation of Trump Entertainment also sought bankruptcy protection from its creditors.
The filing reveals that the company has assets of $2bn and total debts of $1.7bn. Its biggest creditor is US Bank, which is acting as agent for the bondholders in the group. The group of bondholders could not be reached for comment but they are owed $1.3bn, according to the filing.
Other creditors include Bally Gaming, a Las Vegas-based group, and Bovis Lend Lease, the property developer, which is owed $7.5m.
Like other casino operators, Trump Entertainment, which owns three resort properties in Atlantic City, has been hit by the economic downturn and a severe slump in visitor attendance and gaming revenues.
But of course “The Donald” did not feel like take responsibility for his failure. He did what most rich executives do and what some politicians do; He blamed someone else:
In a stinging statement released last week following his resignation from the board, Mr Trump laid the blame for the group’s demise squarely on the bondholders. He accused their representatives of making “a series of bad decisions” and said they had “encouraged wasteful spending, which has led to severe problems with the company”.
Mr Trump pointed to the contrast between Trump Entertainment and The Trump Organisation, which he controls. “While The Trump Organisation grows and flourishes, Trump Entertainment …has languished. The Trump Organisation’s portfolio of residential, commercial, hotel, and golf properties has expanded all over the world, while Trump Entertainment has yet to diversify outside of Atlantic City.”
Mr Trump could not be reached for comment but his statement of last week suggests he opposed the bankruptcy route. “Now I will study and watch as the horrible and outrageous fees being paid to lawyers and consultants will suck the blood from the company,” he said.
“This internal turmoil will be compounded by dramatically deteriorating revenues across the board for casino companies in Atlantic City as the market tanks and competition from local markets grows.”
Ah yes, put the blame on someone else for the failure of a company that bears your name. Instead of being a man and admitting the failure. Trump could have went down there an fired all the idiots, took over ownership of the company and steered it to prosperity, but instead, he continued to lease his name to a failing enterprise and now that it’s bombed, he’s casting blame elsewhere. Typical of people of his ilk.
(H/T The Daily Beast)