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The time Donald Trump almost lost Trump Castle

The time Donald Trump almost lost Trump Castle

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In August 1991 Donald Trump was in the middle of his Atlantic City reign. He owned the Trump Plaza and his masterpiece, the Trump Taj Mahal, had been open more than a year.

But the latest crisis for The Donald was Trump Castle, now known as the Golden Nugget.

The behemoth Taj Mahal was sucking business from Trump Castle. In fact, in December 1990, Trump's father Fred Trump helped save the casino from bondholders through an illegal loan, buying $3.5 million in poker chips and then not using them.

It wasn't enough. In June 1991 the casino reported a 18.7 percent decline in casino revenue from the year before. The state's Casino Control Commission had ruled that if the resort didn't figure out its finances by the end of July, it would lose its gaming license.

The negotiations stretched into August and finally Trump Castle's management and creditor reached a deal on August 2, just before a noon deadline.

But the deal forced Trump to sell  a 50 percent stake to bondholders in exchange for interest-only payments and reduced interest rates as part of a prepacked bankruptcy plan.

Trump later regained full control of Castle, sold it to Trump Hotel and Casinos Resorts and in 1997, renamed in Trump Marina. After several other failed attempts to sell the casino, it was sold to Landry's, who recast it as the Golden Nugget.

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A gallery of party photos from Club Casbah at Trump Taj Mahal. Saturday July 28, 2012. Insider photos by Tom Briglia.

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