donald trump

Trump Beats Icahn In A Battle Over Atlantic City Casinos

Filed under: Wealth

Big money titans Donald Trump and Carl Icahn have been battling for control of the Trump properties in Atlantic City for a while. At one point it looked like Icahn might have the advantage but a judge has ruled that Trump and his partners represent the better deal for creditors of the bankrupt Trump Entertainment Resorts Inc., when a judge. According to Bloomberg News, U.S. Bankruptcy Judge Judith H. Wizmur sided with the bondholders who are owed $1.2 billion. Their proposal included giving Trump a share of his Atlantic City company.

Icahn had been hoping to take over the company and had purchased $480 million in bank debt from banker Andy Beal. In his plan the debt would have been converted to equity, wiping out the bondholders. The winning plan included a promise by billionaire Marc Lasry of Avenue Capital Group to invest $225 million in Trump Entertainment. Under the bondholder plan that $480 million will be reduced by at least $100 million and the rest would be wrapped up in a new bank loan.

The judge went for the bondholder plan partially because it had more support from creditors. Another factor may have been Trump himself. Trump had vowed to take his name off the project if Icahn gained control. There have been a lot of lawsuits and a lot of debate about the value of the Trump name lately but the bondholders determined that the name itself as a brand is worth millions. But don't feel too sorry for Icahn, he still has that unfinished Vegas project, the Fontainebleau to keep him busy.

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Tags: atlantic city, atlantic city casino, carl icahn, donald trump, NJ, Trump Casinos, trump entertainment, Trump Entertainment Resorts

Trump In Trouble Again Over Licensing Condo Projects

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

We recently looked at Donald Trump's troubles south of the border but he's not doing so well in South Florida either. The Sun-Sentinel has a piece taking a look at Trump's projects in the area and the news isn't good. The Trump International Hotel & Tower Fort Lauderdale beach is facing foreclosure. The South Florida Business Journal reported that the condo-hotel project was hit with a foreclosure action last week. The 298-unit project has already been hit with lawsuits from buyers seeking refunds. Like the Baja project we mentioned last week this is another of Trump's licensing deals and some buyers have said they were misled about Trump's role in the project.

Corus Construction Venture filed a foreclosure action March 11 against developer SB Hotel Associates over a $139 million mortgage issued in 2006 by Corus Bank, which failed in 2009. We heard about Corus Construction Venture in January when we learned that one of Phoenix's tallest towers, 44 Monroe is facing a trustee's sale in April and owes Corus Construction Venture $86.8 million. Last year Corus Bank collapsed and was taken over by the FDIC. It owns a 60 percent stake in Corus Construction Venture and the rest is owned by private equity consortium led by Starwood Capital Group an investment firm run by Barry Sternlicht, the founder of Starwood Hotels & Resorts.

Construction started on the Fort Lauderdale project in 2005. The lavish project was designed by architect Michael Graves and was to include a health club, spa, restaurant and more. It was scheduled to open last year. Corus Construction will have the option of either holding onto the project until the market is better or possibly trying to make more immediate money by converting it into a regular hotel and buying out the existing condo unit owners.

Another project in Fort Lauderdale, the 95-unit Trump Las Olas which we wrote about in 2006 never even got off the ground. The only Trump project thriving in South Florida is the Trump Hollywood in Hollywood, Florida. The project opened last year and the 41-story tower includes 200 condos at prices starting at $1.3 million.

Tags: donald trump, florida real estate, florida real estate development, south florida real estate, trump fort lauderdale, trump hollywood, trump las olas, trump licensing

Donald Trump Sued In New Lawsuit Over Failed Project

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Looks like the saga of the failed Trump Ocean Resort Baja is far from over. Radar Online has documents that show a new lawsuits has recently been filed by seven investors in the project. The individuals sued not just Donald Trump but his children, Donald Trump Jr. and Ivanka Trump and others saying they were " duped into buying hotel-condominium units that were never built." The plaintiffs have asked for punitive damages of no less than $10 million dollars.

The lawsuit details the many ways that the plaintiffs feel like they were swindled by Trump. They were led to believe that Trump was directly involved when instead it was a licensing deal. The lawsuit produces evidence including newspaper stories to prove that the project was widely known as a Trump project and that Ivanka Trump and Donald J. Trump, Jr. attended key sales events for the project and announced that they would be purchasing units in the project.

What was to be a 526-suite luxury project with a spa, swimming pool, restaurants and shops has instead turned into an abandoned excavation site with six cement pads sitting on it. The lawsuit papers say that Trump and the developer Irongate did not have financing and construction permits approved before the sales and that the site itself had contamination and mold issues. There is also an allegation that certain "favored" buyers were allowed to purchase without a deposit while others including the plaintiffs were forced to tender hefty sums before purchase.

Last year after a first lawsuit in which investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico, Trump filed a lawsuit of his own. His lawsuit accessed Irongate Wilshire's principals of not following through on the plans for the five-star resort which bore his name. At that time Trump claimed that he was "unfairly targeted" by the buyers' lawsuit because he was not a developer of the project but the latest lawsuit does indicate that his family's involvement may have gone deeper than a name.

Tags: donald trump, failed condo project, irongate, trump baja

Icahn Ups The Ante For Trump's Casinos

by Deidre Woollard (RSS feed) —

Billionaire Carl Icahn must really want to get his hands on Donald Trump's Atlantic City casinos, he's upped the amount of money he is willing to spend to win. Last month I mentioned that Icahn joined banker Andy Beal in his battle against Donald Trump and a group of noteholders led by Marc Lasry. Icahn made a deal to buy a majority of the outstanding first-lien bank debt from Beal, who holds $486 million in liens on the casinos. Now according to a statement filed in U.S. Bankruptcy Court, Icahn Partners has agreed to spend another $125 million to prop up Trump Plaza Hotel and Casino, Trump Taj Mahal Casino Resort and Trump Marina Hotel Casino.

Trump Entertainment filed for Chapter 11 protection last February but had been struggling for far longer. Icahn must really believe that the Trump casinos are a smart bet in the long run. He has performed similar rescue acts in Las Vegas before, buying hotels and casinos and then later selling them for big profits. Atlantic City had experienced a resurgence in recent years with the addition of new luxury casinos but the last year has seen a decrease in tourism due to the economy and the rise of other casinos in Pennsylvania and other neighboring states.

In the proposal Icahn would spend $45 million in immediate financing with a guarantee to provide another $80 million if he is unable to raise $225 million from other investors through a rights offering. Previously Trump bondholders offered $225 million for the casinos, with Donald Trump holding a 10 percent stake in the new company. The company's board supported that plan but Icahn's new bold move may end up turning some heads.

Tags: donald trump, DonaldTrump, trump casinos, TrumpCasinos

Donald Trump Buys Two Golf Courses

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Donald Trump has been snapping up golf courses recently. Trump recently picked up the Pine Hill Golf Club in South New Jersey. The semipublic course designed by Tom Fazio will be renamed the Trump National Golf Club-- Philadelphia. Trump is planning to turn the 10-year-old course into an ultra exclusive, high-priced course like the rest in his portfolio.

Trump also picked up the Branton Woods Golf Club in New York. Both clubs were bought from Empire Golf Management and were reportedly two of Empire's least profitable courses. The golf course industry has been lagging in recent months and we've seen some courses face foreclosure. According to the Philadelphia Inquirer, Empire still owns its four most profitable golf courses. The plan is to make Pine HIll one of the more affordable of the clubs owned and managed by Trump. Both courses will receive multimillion dollar Trump makeovers. Other Trump courses include the hotly contested Scotland project in Aberdeenshire.

Tags: donald trump, DonaldTrump, golf course, golf courses, GolfCourse, GolfCourses

Carl Icahn Joins Trump Casino Takeover Plan

by Deidre Woollard (RSS feed) —

I thought the story of banker Andy Beal's battle against Donald Trump for control of the Trump Atlantic City casinos was pretty exciting before but it just got a hell of a lot more interesting. Billionaire investor Carl Icahn, who I most recently mentioned for his interest in the stalled Fontainebleau project, has stepped into the action. The NY Post reports that he made a deal to buy a majority of the outstanding first-lien bank debt from Beal, who holds $486 million in first-mortgage liens on the casinos. Icahn has thrown his lot in with Beal to try and revive the Trump casino empire which has filed for bankruptcy several times. This puts Icahn and Beal in direct opposition to Trump and his daughter Ivanka who have thrown their support behind a group of noteholders led by Marc Lasry, who hold roughly $1.25 billion in unsecured debt.

The Post article questions whether this is a personal batlle, after all, Trump and Beal were playing nicely together until November when Trump swung his approval over to Lasry's camp in return for a stake in their version of the restructured company. If, as the article, says Beal was feeling vulnerable to criticism that he lacked casino experience then he's got a very experienced ally in Icahn who has a history of buying bankrupt casinos (including the Stratosphere in Las Vegas) and selling them for big profits. For Trump, there's both pride and money at stake, and neither Icahn or Trump is accustomed to losing so this could be a business battle royale.

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Tags: andy beal, AndyBeal, atlantic city, AtlanticCity, bilionaire, carl icahn, CarlIcahn, donald trump, DonaldTrump, trump

Billionaire Poker Player Battles For Trump Casinos

by Deidre Woollard (RSS feed) —

Donald Trump's Atlantic City casinos might not belong to Trump anymore if billionaire banker and high-stakes poker player Andy Beal has anything to say about it. Beal and Trump were once partners doing battle against another group of bondholders to take control of the three bankrupt Trump Entertainment Resorts Inc. casinos. But now Beal has split from Trump and his Beal Bank has offered to convert its $486 million mortgage on the casinos into majority owner equity. The offer drew criticism from attorneys representing Trump Entertainment bondholders, who have offered to buy the casinos for $225 million. Previously Trump and Beal Bank had offered $114 million in cash for the company but last week Trump withdrew from that deal and instead agreed to back the bondholders in return for an ownership stake in the casinos.

Beal might love the art of the deal even more than Trump. After all, this is a man who won more money in a single day than any other poker player: $11.7 million at the Las Vegas Bellagio casino in 2004. Because of Beal's mortgage on the Trump casinos his bank is first in line among bankruptcy creditors.

U.S. Bankruptcy Court Judge Judith H. Wizmur has given both sides until December 3 to try to negotiate a deal. Wizmur has scheduled hearings to start in January to pick the company's new buyer.

Tags: andy beal, AndyBeal, atlantic city, AtlanticCity, casinos, donald trump, DonaldTrump, trump atlantic city, TrumpAtlanticCity

Trump International Hotel & Tower New York Plans $30 Million Makeover

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

Donald Trump's flagship hotel, the Trump International Hotel & Tower New York is getting a little sprucing up. A $30 million renovation will update the 167 guest rooms and suites beginning in January 2010. The renovation will happen in two stages timed for the slower New York City travel months, one half in January through April, and the other half in June through September. The hotel will remain open. The new decor will have a color palette of gray and aubergine with accents of ivory and caramel. Furnishings will be done in velvets and silky fabrics with rosewood, mahogany, maple and walnut finishes. Schonbek crystal chandeliers, purple velvet draperies and silk accent walls will complete the glamorous look. The renovation will be finished by next Labor Day.

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Tags: donald trump, DonaldTrump, hotel renovation, HotelRenovation, trump hotel, trump international, trump new york, TrumpInternational

Donald Trump's Plane For Sale

by Deidre Woollard (RSS feed) —

Filed under: Wings, Celebrity Shopping

A helpful reader directed us to a rather interesting listing, Donald Trump's personal jet. Trump's flashy Boeing 727-100 has shown up on the Controller website. Lest you have any doubt that it is his, the plane has the Trump T on the tail and a 30-foot Trump logo on the side done in gold leaf. A plane like this usually has 134 seats but this plane was reconfigured to hold just 24 passengers in the lap of luxury.

The 1968 vintage plane was originally operated by American Airlines according to Aviation.com. It has been refurbished with soft beige leather armchairs around a conference table. A separate dining area has seating for five around a wood table and additional seating on an adjacent upholstered sofa. A master bedroom offers a posh place for mid-flight nap.

The listing with AvPro in Maryland says it has new paint and is current with all avionics. It has logged a total of 41,833 hours with 29,664 total landings. Why is Trump selling? Is a new, even more lavish plane in the works, or is Trump, like the rest of us, feeling the pinch of a struggling economy?

UPDATE: CNN Money has a quote from George Sorial from Trump's organization who says that Trump is upgrading to a larger aircraft.

[Thanks, Jay!]

Gallery: Donald Trump's Plane For Sale

Gallery: Trump Projects

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Tags: donald trump, donald trump jet, DonaldTrump, DonaldTrumpJet, private jet, private jet for sale, PrivateJet, PrivateJetForSale

Tilda Versus Trump Over Scottish Golf Course

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

It's a ginger battle royale. Oscar-winning actress Tilda Swinton has come out in support of the campaign to stop Donald Trump from building his billion-dollar golf resort near Aberdeenshire, Scotland. Swinton lent her star power in favor of the four hold-outs who have refused to surrender their land to Trump's ambition. She compared the government attempt to push the landowners into selling their land to the notorious "Highland Clearances" of the 18th and 19th centuries when many tenants were pushed off their ancestral lands in favor of rich landowners.

As part of a statement quoted in Page Six, Trump claimed to have never heard of the actress and accused her of using the situation in order to get "some easy publicity for herself." It's a pretty silly claim given that the androgynous actress is notoriously reclusive. Trump also did some name dropping of his own saying that Sean Connery is in support of the project.

Whose Side Are You On?
Trump!	105 (24.1%)
Tilda!	330 (75.9%)

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Tags: aberdeenshire, donald trump, DonaldTrump, golf course, golf development, GolfCourse, GolfDevelopment, scotland, tilda swinton, TildaSwinton

Trump Continues To Fight Angry Scots

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Michael Forbes will not go quietly. Forbes is just one of the angry homeowners on the fringes of the Menie Estate in Aberdeenshire, Scotland, the area soon to be the home of Donald Trump's billion-dollar golf resort. Four homeowners are facing the prospect of compulsory purchase orders to buy their houses because their land is to be part of the Trump development. The homeowners plan to challenge the decision by a local committee to grant the Trump Organization permission for the land in Scottish court.

The Scotsman says that says Donald Trump, Junior and George Sorial paid a visit to Michael Forbes' home this week and were chased away. Forbes, who has been fighting against the Trump development for two years, told the Scotsman that he thinks it is a revenge situation now and that Trump wants everyone who was against him out of the area, a scenario that seems plausible since Trump isn't exactly known for having a warm and fuzzy business style.

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Tags: aberdeenshire, donald trump, DonaldTrump, golf resort, GolfResort, scotland, trump

Will Donald Trump Get His Atlantic City Casinos Back?

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Donald Trump is eager to once again have control of Atlantic City casinos but the road to ownership might be a bit challenging. The Wall Street Journal says that while Trump has reached an agreement with Trump Entertainment Resorts Inc., which is in Chapter 11, the deal is fraught with difficulty. Trump's sale must first get the approval from a bankruptcy court judge and he will also have to appease bondholders who the WSJ says hold about $1.25 billion in second-lien debt and could lose that money if Trump's deal goes through. Trump and the firm's top lender, Beal Bank, agreed to invest $100 million in the company and Beal will extend the terms of a $486 million loan until December 2020 from 2012. The question of what the casino company is actually worth may be key to figuring out what its future will be. Trump is a savvy businessman and may have chosen to act now because he thought he could get his company back for a low price.

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Tags: atlantic city, AtlanticCity, casinos, donald trump, DonaldTrump

Donald Trump Selling In Beverly Hills

by Deidre Woollard (RSS feed) —

Filed under: Estates, Celebrity Shopping

If there's anything Donald Trump believes in, it's that real estate in a good location will always have its value. That might explain why he picked a Colonial style mansion in Beverly Hills with a Rodeo Drive address. The Real Estalker dishes that Donald Trump bought the home last summer and has put it back on the market for $12 million. The home itself is a 10,442 square foot mansion located close to the Beverly Hills Hotel. The home was built in 1981 and the property includes a pool and tennis court.

The listing shows this property as 'looking for backup' and the Real Estalker Mama says that is is in escrow after less than two weeks on the open market. It is unknown if Trump ever lived in the six-bedroom home or even ever set foot inside. The listing says the over 31,000 square foot lot is an "excellent development opportunity" so I think we are looking at a teardown on this one.

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Tags: donald trump, DonaldTrump, real estaet, RealEstaet, rodeo drive, RodeoDrive

Another Lawsuit Over The Value Of The Trump Name

by Deidre Woollard (RSS feed) —

Filed under: Real Estate Developments

Once again the use of the Donald Trump name has gotten a developer in trouble. Earlier this year angry investors sued Donald Trump and Los Angeles developer Irongate Wilshire over the failure of the Trump Ocean Resort Baja Mexico. Now some of the buyers at the new Trump International Hotel & Tower Waikiki Beach Walk have filed a lawsuit looking to get out of their sales contracts. Once again they said that Irongate misrepresented Donald Trump's role in one of their projects. The sellers claim that Irongate said in 2006 that Donald Trump was a co-developer of the 38-story project but that the developer had only licensed the Trump name. The lawsuit alleges that Irongate concealed the terms of the license. The popular project set records in 2006 when sales opened and the units sold out in a single day with units selling for millions of dollars.

The lawsuit says that the buyers were only told right before final deposits were due that the project was Trump in name only. This led to concerns about the worth of the real estate if Trump pulls his name from the project. The AP reports that the lawsuit will be amended to add more buyers. The Trump name was also involved in a similar lawsuit in Florida. Trump is not named in these lawsuits but certainly they must bolster his belief in the value of his name and brand.

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Tags: donald trump, DonaldTrump, hawaii, irongate, lawsuit, waikiki

Trumps's Former Palm Beach Mansion Part Of Major Divorce Dispute

by Deidre Woollard (RSS feed) —

Filed under: Estates, Crimes and Misdemeanors

The mansion that Donald Trump sold in Palm Beach, Florida last year might be at the center of a major divorce battle. Russian billionaire fertilizer mogul Dmitri Rybolovlev and his wife bought the house for $95 million back in 2008. Now Elena Rybolovlev says her husband has been unfaithful and she wants 50 percent of the couple's marital assets, a number she puts between $6 billion and $12 billion. One of the items at issue will be the 33,000-square-foot property. She has asked the court to take jurisdiction over property because she is worried her husband will begin hiding and transferring his assets. Already she says that an art and furniture collection worth around $670 million has been moved out of her reach.

The Palm Beach Post reports that in July 2008, through County Road Property, Rybolovlev paid $95 million cash for the home. Trump had bought the mansion for $41.35 million in 2004 and restored it, asking at one point, for $125 million for the home. Rybolovlev said he purchased the mansion as an investment, the couple spend most of their time in Switzerland. If he has to sell he might be in trouble. For a while Palm Beach was faring well amidst Florida's real estate turmoil but lately it seems like the bigger mansions are slower to move. One that we've been keeping an eye on, Casa Nana, has been on the market for $72.5 million since last summer. Check it out in the gallery below.

Gallery: South Ocean Blvd.