Trump sees bankruptcy as good . . . for himself

By WND Staff

Editor’s note: Business Reform Magazine is your exclusive source for real biblical answers to real business problems.

The gambling empire led by Donald Trump, Trump Hotels, and Casino Resorts, has been struggling for years under a mountain of debt and the pressure from stronger competitors.

In an effort to deal with the $1.8 billion in debt, a proposed restructuring bankruptcy deal is in the works. While the entire plan is very complex, here are several important points to know:

? Many of the bondholders will be required to reduce interest payments from 12% to 7.875%

? Some of the bondholders will be required to convert a portion of the debt to stock and a portion of the debt will be written off.

? In short, bondholders will receive less than agreed upon when the money was loaned, much less!

Donald Trump was quoted by the Now York Daily News as “really happy” with the restructuring agreement and sees no shame in placing the company in bankruptcy. “It doesn’t matter,” he said, “It’s a modern day thing, a legal mechanism.”

While Trump will have his personal ownership reduced from 56% to 25%, he will continue to receive a salary of $2 million per year, plus other lucrative benefits.

Bondholders stand to lose hundreds of millions of dollars on the restructuring deal, while Trump gets to keep a large piece of the equity? To Trump, that’s just business. However, the words of King David sound like they were written for today, “The wicked borrows and does not pay back” (Psalm 37:21 NASB).

An unfortunate reality today is that many business owners and leaders use bankruptcy laws to maintain their position at the expense of the creditors. Trump could have reduced his stake to zero and forgone a salary to give the most back to the legitimate creditors, but as quoted, he’s “really happy.” Bondholders are not so happy.

When watching Trump on TV or reading about him, remember that while millions of Americans lose hundreds of millions of dollars in their personal investments and pension plans, Trump continues to collect $2 million a year while declaring “bankruptcy.” It just doesn’t add up.

Steve Marr is the former CEO of the fourth largest import-export firm in the U.S., a company which facilitated international trade for many of the largest companies in America. Currently, Steve consults with with businesses and ministries utilizing ancient Biblical principles for success in today’s marketplace. Click here to contact Steve, or visit his website at