The Trump Plaza Hotel? Another falter?

trump plaza

Like the Taj Mahal Hotel and Casino, the Trump Plaza Hotel had it’s share of financial problems. Trump was forced to give up 49% of the hotel to Citibank and various lenders that needed to collect something for the millions of dollars The Trump Organization owed in towering debt service payments. Under this plan, Donald Trump would remain as the chief exectuvive but not be paid as such and no longer remain in control of day to day operations.

The Trump Plaza, not making enough to make up for the debt service payments, was forced to file a Chapter 11 Bankruptcy. Over $550 million had accumulated in debt. The Lenders gave Trump more favorable terms in exchange for the large portion of the Hotel.

Although Mr. Trump was having great success in her earlier years with hotels and real estate under his father’s employment, it just goes to show that success doesn’t always result due to prior success. Circumstances that are unforeseen can make even the wealthiest of men come to grips with the reality of debt and bankruptcy. Likewise, failure doesn’t always result in continual favor as seen in Donald Trumps later accomplishments.