Trump-Branded Golf Resort files for Bankruptcy
Trump International Golf Club
Trump does not own or develop the Trump International Golf Club in Rio Grande, Puerto Rico. The golf course and resort uses the Trump name for a fee via a licensing agreement. The club filed for Chapter 11 bankruptcy under its original name, the Coco Beach Golf and Country Club.
It owes more than $78 million, but has only about $9 million in assets, according to bankruptcy court filing. More than 40% of the company's debt, $32.6 million, is due to creditors with secured claims, meaning they can claim some of the club's assets if their loans aren't repaid. A statement from Eric Trump, a vice president at The Trump Organization, said the resort also owes Trump money. "The owner and developer of the Trump International Golf Club in Puerto Rico has, for many months, been in default of its obligations to Trump due to their company's financial constraints and a difficult business climate in Puerto Rico," the statement reads. "The Trump Organization continues to have a great relationship and incredible respect for the developer and its principals." It's unclear how much is owed to Trump, but the bankruptcy filings list says the resort has more than 100 creditors, and Trump is not listed among the top 20.
Donald Trump has been in news headlines since launching his campaign for president in June. At campaign launch, he touted his wealth saying he's worth more than $8.7 billion. The partnership he has with the Puerto Rico golf club is one of his "Trump Branded Projects." In press releases about other branding deals, the Trump Organization has said the projects "represent the highest level of excellence and luxury" and "continue to raise the bar of superior luxurious living." The
Chapter 11 bankruptcy filing indicates the golf resort plans to reorganize its business and pay creditors back over time.
Source: CNN Money / NYC 13 July 2015