Court papers disclose depth of Trump's debt

ATLANTIC CITY, N.J. Donald Trump owes $3.2 billion to banks,$69.5 million to contractors who helped build the Taj Mahal casinoand is involved in 111 court cases, according to documents releasedWednesday.

The documents also reveal that several of Trump's marqueeproperties, including the Taj Mahal and the Plaza Hotel in Manhattan,may be worth hundreds of millions of dollars less than he claims.

The asset analysis by the firm Kenneth Leventhal & Co. was amongdocuments released by the state Casino Control Commission in advanceof hearings today and tomorrow over a $65 million rescue plan Trumpreached with creditors in June.

The papers - which Trump unsuccessfully fought to keep private -give some of the most detailed information yet about the troubleddeveloper's holdings and the rescue plan.

They also cover such matters as lawsuits and other court actionby aggrieved parties ranging from his estranged wife Ivana to the NewJersey State Funeral Directors.

Under the rescue plan, Trump gave up substantial control of hisreal estate and hotel empire in exchange for a debt restructuringthat kept his holdings out of bankruptcy.

Leventhal's report, based on figures as of April 30, said Trumpcontrolled $4.6 billion in assets with a market value of $3.7 billionto $3.9 billion and a short-term liquidation value of $2.9 billion to$3.5 billion.

The documents state that Trump has outstanding debts of $3.2billion to lending institutions, including $933 million to Citibank.

Trump already has pledged his three Atlantic City casinos -Trump Castle, the Taj Mahal Casino Resort and Trump Plaza Hotel andCasino - as collateral for new loans granted under the rescue plan.

Trump put up his equity in the Taj Mahal as a guarantee of anexisting $75 million loan by First Fidelity Bancorp.; his equity inTrump Castle to secure an existing $13 million loan by MidlanticBank; and his equity in Trump Plaza to secure a $19.6 million letterof credit from National Westminster Bancorp.

Trump spokesman Norma Foerderer said Trump would have no commenton the documents.

The major assets listed by Trump, with the value he assigns tothem, the going market rate estimated by Leventhal and the short-termliquidation value estimated by Leventhal were: Taj Mahal and adjacent land: $1.06 billion, $767.5 million, and$740.7 million. Trump Plaza, the land under it and the adjacent land: $647.8million, $555.2 million to $655.2 million, and between $412.4 millionand $642.4 million. Trump Castle: $571.5 million, $400 million to $460 million, and $300million to $350 million. The Plaza Hotel in Manhattan: $830 million, $450 million to $550million, and $413.2 million to $500 million. The Grand Hyatt Hotel in Manhattan: $150 million, $90 million to$110 million, and $80 million to $100 million. The Trump Shuttle airline: $340 million, $340 million, and $150million to $300 million.

Trump also owes $69.5 million to 253 subcontractors who workedon the Taj Mahal.