The billionaire Donald Trump has taken his company into Chapter 11 bankruptcy, wiping out most shareholders. Trump Hotels & Casino Resorts, Inc sought the restructuring after reaching agreement with most of its creditors. Trump’s stake will be cut to 27% from 47% but he remains as chairman and CEO and is reported to have said, with his usual boisterousness, that the bankruptcy is just a technical thing, not a failure – a success.

Players at the company’s casinos, three in Atlantic City and a riverboat in Indiana, would not feel any effect from the bankruptcy as the operations will continue as normal. Trump is to press ahead with refurbishment of the properties and the building of an additional tower at the Taj Mahal in Atlantic City. He also still has expansion plans in places as far apart as Scotland and Asia. However, what is less certain is the reaction of the financial institutions after this second filing for bankruptcy protection. In 1992 theTrump Taj Mahal, Trump Castle and Trump Plaza were rescued by Chapter 11 for amounts less than the present debt.

Donald Trump has recently become well known for his prime-time television programme The Apprentice and its catchphrase ‘You’re Fired’. The casino business is only a small part of a real estate empire that makes Trump the 74th richest man in the world, according to a recent Forbes ranking. He insists that this time the reorganization of Trump Hotels & Casino Resorts, Inc under court supervision will mean that a lighter debt load and sufficient credit will give the company what it needs to compete with other casino operations.

It may be a case of ‘third time lucky’ for Donald Trump as a casino operator, and that his company will emerge from bankruptcy as a powerful gaming company with a bright and successful future. Or maybe he will fail yet again and hear the words: ‘Donald, You’re Fired!’ ringing in his ears.

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