Taj Mahal high-yield bond financing
What happened
promisereported Trump promoted the Taj Mahal as a major completed casino resort and business achievement.
- The Washington Post: Trump's bad bet: How too much debt drove his biggest casino aground2016-01-18 · Financing, analyst warning, contractors, bankruptcy, and bondholders
- The New York Times via U.S. House Judiciary Committee record: How Donald Trump Bankrupted His Atlantic City Casinos, but Still Earned Millions2016-06-11 · Pages 2-9: financing, related transactions, bankruptcies, and outcomes
actiondocumented The project was financed through high-yield debt carrying demanding repayment terms.
- U.S. District Court for the District of New Jersey via Justia: In re Donald J. Trump Casino Securities Litigation1992-06-12 · Bond offering, disclosed risks, asserted omissions, and disposition
- The Washington Post: Trump's bad bet: How too much debt drove his biggest casino aground2016-01-18 · Financing, analyst warning, contractors, bankruptcy, and bondholders
- The New York Times via U.S. House Judiciary Committee record: How Donald Trump Bankrupted His Atlantic City Casinos, but Still Earned Millions2016-06-11 · Pages 2-9: financing, related transactions, bankruptcies, and outcomes
affected groupreported The casino opened but needed unusually strong daily operating performance to service the debt.
- The Washington Post: Trump's bad bet: How too much debt drove his biggest casino aground2016-01-18 · Financing, analyst warning, contractors, bankruptcy, and bondholders
- The New York Times via U.S. House Judiciary Committee record: How Donald Trump Bankrupted His Atlantic City Casinos, but Still Earned Millions2016-06-11 · Pages 2-9: financing, related transactions, bankruptcies, and outcomes
limitationdocumented A federal court dismissed securities claims based on the offering record, which had disclosed significant risks.
- U.S. District Court for the District of New Jersey via Justia: In re Donald J. Trump Casino Securities Litigation1992-06-12 · Bond offering, disclosed risks, asserted omissions, and disposition
People and organizations
- Taj Mahal bondholdersaffected party
- Trump Taj Mahal Associatesaffected party
Assessment
The casino opened on financing that created a documented repayment burden, and that burden preceded its restructuring.