Trump Taj Mahal files paperwork for prepackaged bankruptcy

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On or shortly after June 17, Donald Trump’s lawyers file paperwork to declare bankruptcy for the Trump Taj Mahal and take last year’s prepackaged plan to a federal judge.

Last November, Trump missed a $47.3 million interest payment and defaulted on his $675 million Taj Mahal debt. Carl Icahn (one of the Taj Mahal bondholders) and Wilbur Ross, representing a majority of the casino’s bondholders, worked out a prepackaged bankruptcy with Trump to keep the business running.

New Jersey’s Casino Control Commission approved of the plan in recent days. With that approval, Trump takes the next step and files for bankruptcy. If the courts approve of the package, Trump will lose up to half of his stake in the Taj Mahal to the bondholders.

The package is approved on October 4.

A “prepackaged” bankruptcy petition, in which the majority of creditors and the debtor had already agreed on a plan that needed the court’s approval, was approved in Federal bankruptcy court yesterday. As part of the petition, Mr. Trump must insure that the casino meets projections for earnings and performance in order to keep control of the company’s board.

The New York Times – Oct. 5, 1991

Note 1: Some reports say Trump loses half of his stake in the company. Other reports say 20 percent.

Note 2: The Trump’s Castle Hotel and Casino is also filing for bankruptcy around this time, but I think it’s separate from the Taj Mahal package.

External Sources

The New York Times – June 17th Deadline (Archived)

The New York Times – Taj Mahal Out of Bankruptcy (Archived)

Note From TF

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Dates on Trump File reflect when something happens, not when it's first reported.

On or shortly after June 17, Donald Trump’s lawyers file paperwork to declare bankruptcy for the Trump Taj Mahal and take last year’s prepackaged plan to a federal judge.

Last November, Trump missed a $47.3 million interest payment and defaulted on his $675 million Taj Mahal debt. Carl Icahn (one of the Taj Mahal bondholders) and Wilbur Ross, representing a majority of the casino’s bondholders, worked out a prepackaged bankruptcy with Trump to keep the business running.

New Jersey’s Casino Control Commission approved of the plan in recent days. With that approval, Trump takes the next step and files for bankruptcy. If the courts approve of the package, Trump will lose up to half of his stake in the Taj Mahal to the bondholders.

The package is approved on October 4.

A “prepackaged” bankruptcy petition, in which the majority of creditors and the debtor had already agreed on a plan that needed the court’s approval, was approved in Federal bankruptcy court yesterday. As part of the petition, Mr. Trump must insure that the casino meets projections for earnings and performance in order to keep control of the company’s board.

The New York Times – Oct. 5, 1991

Note 1: Some reports say Trump loses half of his stake in the company. Other reports say 20 percent.

Note 2: The Trump’s Castle Hotel and Casino is also filing for bankruptcy around this time, but I think it’s separate from the Taj Mahal package.

External Sources

The New York Times – June 17th Deadline (Archived)

The New York Times – Taj Mahal Out of Bankruptcy (Archived)

NOTE FROM TF

Some files are incomplete as the site is still young and Trump world moves fast. Please use the source links to read further if a topic interests you or if you doubt its authenticity. I plan to go back and build on every file in the future.

If there is content you'd like to add context to or something that should be corrected, please contact us by clicking here or email us at trumpfile@protonmail.com

Support The Site:

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