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Trump Hotels & Casino Resorts Inc has filed for Chapter 11 bankruptcy. Donald Trump will retain a 27% stake. This is the second time in 14 years that Trump Casinos has filed for bankruptcy. After posting multimillion dollar losses for years. In an industry experiencing incredible profits. Trump is and apparently always has been Mr. Leverage... he runs up huge debts against his current business interests as a means of underwriting his newest project, then files for bankruptcy when things take a turn for the worse. When trump casinos filed for bankruptcy protection in 1992, the company owed over $1 Billion dollars to its creditors. After writing off what I can only assume what was a substantial chunk of that debt burden, Trump has managed to get the company $1.8 Billion in the hole this time. So what does the Chump plan to do with the hundreds of millions that his financiers are pumping into the deal? Why, spend it, of course! On improvements and expansion of his casino empire... that he's already unable to run at a profit. But that's classic Trump... spend every last dime making it the "biggest, greatest" whatever, toss in a hefty dose of reputation, and pray that you're able to cover the debt payments. If not, the option of another trip to bankruptcy court is just 7 years away anyway. Trump says he wants to maintain control of the casino's despite their status as a small part of his purported fortune because "they've been good to me". I guess I'd look at any company that spun me off millions while I ran it into the ground to have been good to me, too.

Who wins under the bankruptcy filing? Trump, who retains a big chunk of the total company... and who paid himself a salary of millions each year for continuing to run the company into the ground. He will also apparently remain the Chairman and CEO - though it's beyond me why you'd continue to let this guy run anything resembling a business. The creditors also apparently come out all right on this deal, or else they wouldn't have agreed to it in the first place.

So who loses? The small shareholders, who will see their stock positions wiped out, though they'll apparenly be allowed to BUY their way back in! Gee, thanks, Mr. Trump. Nice to know that you're (still) looking out for #1.

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