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Politics : A Hard Look At Donald Trump

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From: Brumar893/2/2016 2:15:45 PM
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Trump Bankruptcy: Icahn takes the keys

By: Chris DeMuth Jr.



Mr. Trump likes 4-letter words, but 5-letter ticker symbols. The latest, Trump Entertainment Resorts (TRMYQ), just exited bankruptcy. With that process complete, the equity is transferred to the senior lenders. Former debt holder Carl Icahn provided Trump Entertainment Resorts with $82.5 million in exit financing. He now owns its properties including the Trump Taj Mahal and Trump Plaza Hotel and Casino in Atlantic City.

Trump branded casinos have been through bankruptcy multiple times. Donald Trump had equity ownership for the first three. Trump branded casinos have had to use the bankruptcy process to protect it against litigation, cut labor cost, and restructure debt that it could not pay. Previous to the Trump Entertainment Resorts bankruptcy, Trump Atlantic City went bankrupt, then Trump Hotels & Casino Resorts went bankrupt, then Trump Atlantic City went bankrupt again.

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Trump name on a building doesn't mean any Trump owns anything there. He lost his "brand" in bankruptcy court.

Trump Taj Mahal Casino Out of Bankruptcy, Into Carl Icahn’s HandsAtlantic City casino will retain Donald Trump’s name

Associated Press
Feb. 26, 2016 10:57 p.m. ET
ATLANTIC CITY, N.J.—The name on the side of the building still says “Trump,” but Atlantic City’s Taj Mahal casino is now owned by a different billionaire—Carl Icahn.

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http://www.wsj.com/articles/trump-taj-mahal-casino-out-of-bankruptcy-into-carl-icahns-hands-1456545458
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