Fact Check: Has Donald Trump Filed for Bankruptcy Six Times?
Donald J. Trump is the 45th and 47th (current) President of the United States. However, before becoming POTUS, Donald Trump was a renowned businessman and media personality. He is known to be associated with 540+ businesses, with his organization owning most of them.
Even such a renowned and powerful figure has had to file for bankruptcy time and again. The first filing was all the way back in 1991, and the most recent one was in 2014. Is it true that he filed for bankruptcy six times? Yes, it is true, and here are the six times Donald Trump filed for bankruptcy:
4. Trump Hotels and Casinos Resorts (2004)
1. Trump Taj Mahal (1991)
The first-ever bankruptcy Trump had to file for came in 1991, when the Taj Mahal casino failed to generate enough revenue to cover the debt payments. The casino was opened in April 1990, but failed to pay a $47.3 million bond payment. [1]
Trump agreed to a prepackaged Chapter 11 bankruptcy in 1991, as the casino’s debt obligations of $675 million were far from being reached. Over the next few years, Trump tried to reignite the Taj Mahal casino, but it did not work. Under the new ownership, the casino closed down in 2016.
2. Trump Castle (1992)
The second Trump bankruptcy filing followed soon after, as his casino, Trump Castle, became unprofitable in 1991. The casino was opened in 1985 and had seen 4-5 good years, but then lost $93.2 million in 1990 and 1991.
By 1992, Trump Castle filed for Chapter 11 bankruptcy, which required Donald Trump to give up around 50% of the casino’s equity to bondholders. [2] This earned him an exchange of lower interest rates on the debt. Under new management, the casino was then renamed Golden Nugget Atlantic City and still remains operational.
3. Trump Plaza Hotel (1992)
Donald Trump acquired Hotel Trump Plaza in 1988 for around $400 million. Within four years, the debt accumulation of the Plaza Hotel went over $550 million. As a result, the hotel had to file for Chapter 11 bankruptcy and alleviate the burden.
Donald Trump gave up a 49% stake in lenders in this bankruptcy, and also had to relinquish his salary and day-to-day duties. [3] The Trump Plaza was demolished in 2021 due to its derelict state, with the vacant lot still awaiting new construction/plans.
4. Trump Hotels and Casino Resorts (2004)
Trump’s next bankruptcy did not happen for another 12 years, when in 2004, Trump Hotels & Casino Resorts had to file for Chapter 11 bankruptcy. The debt owed by the entity was more than $1.8 billion—Donald Trump’s biggest bankruptcy to date. [4]
The company secured a bailout plan worth $400 million with DLJ Merchant Banking Partners. As a result of this bankruptcy, Trump’s majority position in the entity ended, as it went from 56% to 25-27%.
5. Trump Entertainment Resorts (2009)
After 2008’s financial crisis, many major corporations and conglomerates took a hit, including Trump Entertainment Resorts. The entity had to file for Chapter 11 bankruptcy in 2009, with a debt of around $1.74 billion. [5]
Trump Entertainment Resorts had liabilities of hundreds of millions of dollars. The assets and worth were barely around $2.04 in assets only. [6] By 2016, Trump Entertainment Resorts no longer existed, and the properties were sold by the new owner, Carl Icahn, and then demolished.
6. Trump Entertainment Resorts (2014)
The Trump Taj Mahal Casino in Atlantic City (owned by Trump Entertainment Resorts) would come back to trouble Donald Trump again in 2014. An estimated loss of $350 million would lead to its complete closure in 2016. [7] In September 2014, for a second time, Trump Entertainment Resorts filed for Chapter 11 Bankruptcy.
Are The Six Trump Bankruptcy Filings Disputed?
Some people say that these bankruptcy filings only count as four, due to three of them being Donald Trump’s Atlantic City ventures. These include Trump Taj Mahal (1991), Trump Entertainment Resorts (2009), and Trump Entertainment Resorts (2014).
However, their different times in history, reasoning, and separate filings verify that these are SIX different Chapter 11 bankruptcies. Thus, the six bankruptcy filings that Donald Trump or his entities have filed over the years are factual, with evidence to back them up.
Which Chapter of Bankruptcies Were Trump's 6 Bankruptcy Filings?
All six of Trump’s bankruptcy filings were Chapter 11 bankruptcy filings. From 1991 until the most recent one in 2014, the Trump bankruptcies were filed in New York and Atlantic City, under US Code Chapter 11.
How Did Trump's Bankruptcy Filings Impact His Casino and Hotel Businesses?
Due to Chapter 11 bankruptcies, Trump lost significant stakes in casinos and businesses that he owned or bought. Due to the decline of Casinos like Taj Mahal, Trump Plaza, and Trump Marina, half of the employees lost their jobs, and around 40% of the combined revenue went down the drain. [8]
These are the six primary bankruptcies that Donald Trump filed for in 23 years, from 1991 until 2014.
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Sources:
[1] Furlong, T. (2019, March 9). Trump to Place the Taj Casino Into Bankruptcy : Entertainment: After it emerges from Chapter 11 in a few weeks, bondholders may own 50% of it. The developer cut a deal after missing a $47.3-million bond payment. – Los Angeles Times. Los Angeles Times. https://www.latimes.com/archives/la-xpm-1990-11-17-fi-4075-story.html
[2] Trump's Castle and Plaza file for bankruptcy – UPI Archives. (1992, March 9). UPI. https://www.upi.com/Archives/1992/03/09/Trumps-Castle-and-Plaza-file-for-bankruptcy/3105700117200/
[3] Reback, M., Reback, M., & Reback, M. (2011, April 21). Donald Trump’s Companies Filed for Bankruptcy. Consumer Watchdog. https://consumerwatchdog.org/uncategorized/donald-trumps-companies-filed-bankruptcy-4-times/
[4] Trump casinos file for bankruptcy. (2004b, November 22). NBC News. https://www.nbcnews.com/id/wbna6556470
[5] ABC News. (2009, February 17). Trump Entertainment Resorts files for bankruptcy. https://abcnews.go.com/Business/story?id=6895252&page=1
[6] Writer, S. (2009, February 17). Trump Resorts files for bankruptcy a third time. The Columbus Dispatch. https://www.dispatch.com/story/news/2009/02/17/trump-resorts-files-for-bankruptcy/24186662007/
[7] BBC News. (2016, August 4). Trump Taj Mahal casino to shut down after years of losses. https://www.bbc.com/news/business-36972005
[8] Bankruptcy expert studies Trump casinos. (2018, October 3). Temple Now | news.temple.edu. https://news.temple.edu/news/2016-10-25/bankruptcy-expert-studies-trump-casinos
