Who is getting fired next year?
It seems as though Donald Trump’s heavily disputed golf development in the Scottish wilderness may now be in some doubt. Despite claims from the Trump camp that financing is not an issue, problems in several other areas of Mr. Trump’s business interests may have an effect.
Trump was finally given permission to build what he described as “The Greatest Golf Course in the World,” after battling environmentalists and the local council for the right to do so. Against the wishes of both these groups, the Scottish government stepped in and declared that any detrimental effects on the local environment was outweighed by “social and economic benefits.” But things have taken a slight turn for the worse financially-speaking since this decision was made, which begs the question as to the likely impact on the Aberdeenshire course’s short term future.
The Trump Hotel and Tower in Dubai has been canceled, or at least “delayed,” for the foreseeable future.
The gaming industry is suffering a far larger downturn that was expected, with visitor levels falling in Las Vegas and Atlantic City, and predictions that this will continue, with a recovery not likely before 2010. Trump Entertainment Resorts defaulted on a $53 million interest payment last week, although this was apparently in the interests of “maintaining sufficient liquidity.” Last time I checked, not paying your bills was not the best way to do this, and I expect to see lawsuits flying soon.
Speaking of lawsuits, Mr. Trump recently fired off one of his own at Deutsche bank, accusing the bank of wrongly refusing to extend the loan on the Trump International Hotel and Tower in Chicago, which is also in default. The somewhat tenuous basis for this suit is the fact that the economic downturn is an “act of god,” and that Deutsche bank was in some way responsible for the current economic crisis, and should pay damages. Much as I may agree with that sentiment, there is a long list to be added to this bank. Needless to say, Deutsche bank are seeking to have this lawsuit dismissed and are demanding Mr. Trump pays the $40 million personal guarantee related to the construction loan. At least 2009 will offer some entertaining legal battles. Part of me is hoping he wins, if only for the gumption shown.
The legal battles do not end there though – Mr. Trump recently filed suit against the city of Rancho Palos Verdes in California, for forcing him to spend millions of dollars on “unnecessary environmental studies,” for structural developments around his “Trump National Golf Club.”
But wait, there’s more – on the 18th December, Mr. Trump also sued the Philadelphia state Gaming Control Board for unfairly denying him a casino license in that city, after the board decided that he was planning to lure gamblers to Atlantic City in an effort to improve numbers as the Atlantic City casinos emerged from bankrupcy. There are some suggestions that this is a delaying tactic aimed at slowing down the growth of any competition.
On top of all these, it looks as though Mr. Trump is on the verge of having to pay out $4.1 million to former investors in a past settlement filed by seventeen former Trump casino shareholders. An appeal was denied last month and the shareholders have requested a federal bankrupcy court to liquidate the three Trump casinos.
Managing Director of international development with the Trump Organization, George Sorial, says that there is no connection between the various projects, and there is no need for financing for the Scottish development. Mr Trump did manage to sell his Palm Beach Mansion for $100 million earlier this year, so perhaps this is the case? Far be it for me to suggest any connection between these various issues (I have no wish to end up in court), but I would have thought that there will be no time to build a golf development in Scotland as it appears Mr. Trump will be spending most of 2009 in front of a judge. 
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I think that anyone that uses the system to benefit his own personal greed should have their dick cut off. He is worse than a rapist!! All he his doing is screwing everybody out of their money.