The purpose of writing this report is to find a solution for Trump Entertainment Resorts bankruptcy problems. Mainly on the Trump Taj Mahal.

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Executive Summary

These are proposals of Gamms Inc recommendations to Trump Entertainment Resorts Inc on their current bankruptcy problem. The purpose of writing this report is to find a solution for Trump Entertainment Resorts bankruptcy problems. Mainly on the Trump Taj Mahal.

The scope of the report is this report contains the findings of the current situations of the company and the problems it is facing. There will be also recommendations on how to solve the problems at the end of the report. Other extra information is include in the appendix.

The methods that we used for this report is researching through Internet, news report, timeline and journals. We are however only able to find all of the information we needed through 2nd hand resources due to the difficulty getting in touch and get the information from the actual company.

The recommendation to solve Donald Trump’s problem is for him to expand his company in China mainly in the big cities such as Beijing. There are a few ways to expand the business and overcome the crisis. First, Donald Trump should have his business collaborated with Chinese companies in China. Donald Trump will provide the land for buildings while his business partners will invest money into their projects in the future. In order to convince Chinese Businessmen to invest in Trump companies, Donald Trump should propose a great business proposal that include hotels, resorts, casinos and luxurious apartments.  

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1. Introduction

1.1 Authorization


This business report is commissioned by Gamms Inc. The purpose of this report is proposing solutions to Trump Entertainments Resort Inc concerning the bankruptcy problem currently.  

1.2 Limitation

We are able only to get all of the information we needed through 2nd hand resources due to difficulty getting in touch and get the information with the actual company.

1.3 Scope of the report

This report will contain the findings of the current situations of the company and the problems it is facing. There will be also recommendations on how to solve the problems at the end of the report. Other extra information will be included in the appendix.

2. Background

Trump Entertainment Resorts, Inc. is a holding company that owns and manages two casinos and hotels in Atlantic City, New Jersey, and United States. It was formerly known as Trump Hotels & Casino Resorts. This company was founded by Donald J. Trump, he was the chairman of the Board of Directors until he resigned in 2009. The current Director and Chief Executive Officer is Bob Griffin. This organization runs two properties: Trump Taj Mahal and Trump Plaza. These have 6600 slot machines altogether, nearly 350 gaming tables and over 3600 hotel rooms. Although Trump is not on the group’s board, he was still given stock in the company for its use of his name and likeness.

Trump Taj Mahal is located at 1000 Boardwalk in Atlantic City, New Jersey, United States. The Taj Mahal has one of the largest poker rooms in Atlantic City with approximately 75 regular tables and 14 tournament tables. This casino was officially introduced in 1990 and was built at a total cost of nearly one billion dollars.

2.1 Previous Problems

Trump Entertainment Resorts, Inc. has been bankrupted three times before this current problem in 2009.

In July 1991, Trump filed for the 1st Chapter 11 bankruptcy protection for about $3.5 billion. The U.S Bankruptcy Court approved of the financial restructuring of Taj Mahal in August 1991. They must give half of the ownership of the casino to bondholders in exchange for lower interest payments.

In March 1992, the organization had to file for Chapter 11 for Trump Plaza Hotel & Casino and Trump’s Castle, which is now known as Trump Marina Hotel Casino. In May 1992, Trump Plaza and Trump’s Castle won bankruptcy court approval to restructure their debts. They gave up 49% of his interest to banks and other lenders.

November 2004 was Trump’s third bankruptcy. Trump Hotels & Casino Resorts Inc. files for Chapter 11 bankruptcy in a prearranged deal with corporate bondholders to restructure $1.8 billion of debt for all three Trump casinos. At this point, Trump reduced his interest in Trump Hotels & Resorts to 27%. May 2005 was when the Trump casinos emerged from Chapter 11 protection under a new company, Trump Entertainment Resorts Inc. This restructuring trims about $600 million in debt and slashes interest payments by $102 million annually. Donald Trump remained chairman of the board, but gave up his title of chief executive officer and also his majority control to bondholders.

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2.2 Current Problem

In February 2009, Donald Trump and his daughter resigned from the Trump Entertainment board of directors due to a feud with the bondholders. Trump also quits as chairman. Four days after his resignation, Trump Entertainments Resorts Inc. is now under bankruptcy again.

3. Planning Development

Foreign Direct Investment (FDI) represents capital invested in a country that provides manufacturing and service capabilities for both native consumers and world markets. FDI is instrumental in bringing goods and services to the global marketplace, and the influx of foreign investment not only displays investor confidence in the ...

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