donald trump atlantic city casino bail out

Morgan Stanley was chosen as the lead arranger to provide the company with additional $500 million in financing under the restructuring in which Trump reduced his interest in the company from 56% to 27%. After losing money for ten years in a row, the only solution was a restructuring of the company. is provided below shows the nine-year decline in the price of its stock.Īlthough the company earned a gross profit each year, it had about $1.8 billion in outstanding debt, generating around $220 million in interest expenses. A chart of Trump Hotels & Casino Resorts, Inc. By March 2005, shares were trading at 75 cents, and shareholders had lost over 95% of their investment. There wasn’t a single year of the company’s operation in which it made a profit, and the shares steadily declined in value as the losses piled up. At first, the stock did well, reaching a high of $34 on June 5, 1996, giving the company a capitalization of $800 million, but there was just one problem. Trump Casinos) with Trump maintaining a controlling 56% interest. On June 7, 1995, Trump Hotels and Casino Resorts went public, issuing 10 million shares at $14 using the symbol DJTC (Donald J. The company also looked into opening casinos in Detroit and Kansas City and opened casinos in Coachella, California and in Gary, Indiana. Trump established Trump Hotels and Casino Resorts in 1995, granting it ownership of Trump Plaza, sold the Trump Taj Mahal to the company for $890 million and sold the Trump Castle for $485 million.

The hotel was financed with $675 million in junk bonds paying 14% in interest.

The Taj Mahal Casino opened in Atlantic City in 1990 at a cost of $1.1 billion. After Atlantic City made gambling legal, Donald Trump got his casino license from the New Jersey Casino Control commission on Maand purchased hotels from Holiday Inn, Hilton and Resorts International which became the Trump Taj Mahal, Trump Plaza Hotel and Casino and Trump’s Castle Hotel Casino.

Donald trump atlantic city casino bail out