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Last Updated: Tuesday, 10 August, 2004, 06:59 GMT 07:59 UK
Trump Hotels planning bankruptcy
Donald Trump
Mr Trump has not been shy to promote himself or his ventures
The flagship company of flamboyant businessman Donald Trump is to apply for voluntary bankruptcy in the US.

Trump Hotels & Casino Resorts will go into Chapter 11 protection so that it can restructure $1.8bn (978m) of debt and get $400m in extra funding.

Under Chapter 11 a business gets time to rearrange its finances so it can carry on trading.

Trump Hotels, which owns casinos including the Taj Mahal in Atlantic City, has lost money in recent years.

Auditors recently warned that the business might not be a going concern.

Helping hand

As part of the plan to save the company, Mr Trump and Credit Suisse First Boston will invest $400m. The banking and brokerage giant will provide the majority of the money, cutting Mr Trump's holding to 25% from 56%.

Many of the casino's bondholders also have agreed to restructure their current holdings for $1.25bn in new 10-year publicly traded debt and a mixture of cash and stocks.

The company's annual interest rate will drop to just under 7.9% from 12% as a result.

Mr Trump has had a mixed couple of years.

While he no longer owns the building that made him famous, Trump International Hotel and Tower in New York, he has become something of a television star.

Mr Trump - or "The Donald", as he prefers to be known - has been a remarkable success in The Apprentice television series.

Over 13 weeks the contestants were put through a number of tasks to see how they coped in the world of multi-national corporations.

The programme proved a ratings success for the NBC network, regularly attracting 20 million viewers as 16 candidates were whittled down to one.

Mr Trump even coined his own catchphrase - "You're fired!".


SEE ALSO:
Trump chooses winning Apprentice
16 Apr 04  |  Entertainment
Trump TV hit edges towards finale
13 Apr 04  |  Entertainment
Trump the winner in hit gameshow
19 Mar 04  |  Business


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