Fourth Time’s a Charm: How Donald Trump Made Bankruptcy Work for HimApril 29, 2011 – In The News
Although Donald Trump has claimed bankruptcy four times, he remains, to the wonder of many, a multibillionaire.
"Corporations, limited partnerships and LLCs in which he had an ownership interest or companies that had his name attached have filed for bankruptcy," said Michael Viscount. "Therein lies the big distinction."
Trump has never claimed bankruptcy personally and uses Chapter 11 as a business tool to restructure his companies.
Viscount doesn't believe Donald Trump himself should be held accountable for any of his company's bankruptcies -- his creditors, he said, knew what they were getting themselves into when they lent Trump money over and over again. "They're all big boys and girls," he said. "They've played this game before, in the insolvency space. The company that possessed his name filed bankruptcy because it was overleveraged. What does that tell you? People want to lend him money. He does grandiose things with it."
Viscount doesn't think Trump has misused the system at all. "Chapter 11, in my view, is the ultimate business transaction forum. It's the place you go to keep a business alive and well. He's done nothing inappropriate."