Trump Agrees to Sell Hotel, Shuttle With AM-Trump's Casinos
Apr. 30, 1991
ATLANTIC CITY, N.J. (AP) _ Donald Trump has agreed to sell his Trump Shuttle, Grand Hyatt Hotel in New York and his personal jet to help settle his debt with nine banks, according to a document released Monday.
Citibank reported that all lenders in the Trump Shuttle have agreed to the sale of the airline to Northwest Airlines, relieving Trump of $135 million in personal guarantees, Trump Organization chief financial officer Stephen Bollenbach said in a letter to state casino regulators.
Bollenbach also said Trump has agreed with Banker's Trust on the transfer of his equity in the Grand Hyatt in New York City, estimated to be worth at least $80 million, and with Chase Manhattan on the sale of his personal jet. Trump will keep about half the proceeds from selling the 727 airplane, which is expected to fetch about $7 million.
''I am encouraged and confident that we will meet our June 17 target of having signed agreements with all the banks,'' Bollenbach wrote.
The letter fulfills a weekly reporting requirement the Casino Control Commission imposed as part of the April 18 conditional relicensing of Trump's Taj Mahal Casino Resort.
At that time, Commission Chairman Steve Perskie said he wanted to see evidence of steady movement toward restructuring of Trump's billion-dollar debt before June 17, when the casino is scheduled to enter bankruptcy court as part of its own restructuring of $675 million in bond debt.
The commission, meanwhile, began hearings Monday on the relicensing of the Trump Plaza Hotel and Casino and the Trump Castle Casino Resort By The Bay.