by editorial office, chd, tophotel.de

So it happened, after all: Hotel tycoon Donald Trump was not able to prevent the downfall of his Atlantic City casinos and has now opted for creditor protection for Trump Entertainment Resorts Inc. The 62-year old is now bankrupt – at least as main shareholder of the casino group. He resigned from his position of Chairman of the Board. His daughter, Ivanka, a member of the directorate for two years, stepped down from her post, as well. It remains to be seen if he will be able to buy back his casino empire – he did point at it, at any rate.

The bankruptcy was brought about by the repeated restructuring of the USD1.25 billion mountain of debt weighing down on the casinos. Trump had repeatedly put off the payment of a due loan of USD53 million that he could not or did not want to settle. The revenues from the three casinos had decreased significantly in the past. The three hotels may now be restructured while continuing to operate, according to the „Chapter 11“ plan.

How big of an impact this bankruptcy will have on Trump’s other business segments is not yet clear. One hotel project in Dubai had to be abandoned. An ambitious project for a golf resort in Scotland is facing resistance by the residents, but there are no other negative reports.