Donald Trump resigned as Chair of the Board of Trump Entertainment Resorts five days ago and yesterday the company filed for bankruptcy protection in New Jersey. Doing this gave it the jump on its creditors who were said to be planning to present an involuntary winding-up petition.
This is the third time that this company has been in this position but, as For Argyll reported earlier, Trump learned from those earlier experiences. It is the actions he took then in the restructuring of his companies and their interrelationships that lends some credence to the assertion that his major golf resort initiative at Balmedie in Aberdeen is not threatened by this situation.
Since the earlier failures with his Atlantic City casino resort, Trump has made each of his companies standalones so that they cannot drag each other down. The casino industry is obvioulsy vulnerable to recession and as a result of this, as we reported in December 2008, Trump Entertainment Resorts missed a $55million interest payment then, a signal that it was in real trouble. Yesterday was the expiry of the period of grace the company had to make this payment and saw it file for bankruptcy protection instead.
The Trump organisation has always talked a good talk and yesterday Trump’s senior representative, George Sorial, who has been closely involved with the Balmedie Links project, was saying bullishly that the project is moving even faster than they had envisaged. He points to the weak pound as a major commercial advantage to them, saying that contracts costing them $1 million per annum are now down to $650,000, so they’re going ‘full steam ahead’.