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Trump's campaign is running on a $45M deficit
Can a campaign file for Chapter 11?
Will Trump’s Campaign Drown in Debt?
For a rich man, Donald Trump is suspiciously familiar with bankruptcy court. Oh, but never for himself, he’ll rush to explain. Those were companies he “put into a chapter”—presumably Chapter 11—and the times he “used the laws of the country” to cut deals with creditors and avoid financial ruin. Trump has sought bankruptcy protection for some of his biggest investments, including the Trump Taj Mahal, Trump Castle, and the Plaza Hotel.
Trump is heading in a similar direction with his campaign. As of May 31, it had only $1.3 million in cash, and a whopping $45.7 million in debt. Campaigns can’t really go bankrupt, as they’re pretty light on assets. But as the adage goes, campaigns don’t end—they run out of money. Trump has staved off that eventuality for now by shouldering a heavy load of loans.
....
Trump owed far more to creditors in April than any other federal campaign committee, according to FEC records. While aggregate statistics aren’t yet available for May, he’s probably still at least toward the top of the list. No other major presidential campaign in the last eight years has saved so little or gone so deeply into debt. Hillary Clinton has more than $30 million in the bank and carries only $600,000 in loans; Bernie Sanders, he of the $27 donation, is debt-free and holds about $5 million in reserves.
Even Ted Cruz has more money than Trump: $6.8 million, almost three times the billionaire’s campaign savings. Trump’s debt is unprecedented in recent history, blowing away even John McCain, whose money problems in early 2008 threatened his bid.
....
The Atlantic
For a rich man, Donald Trump is suspiciously familiar with bankruptcy court. Oh, but never for himself, he’ll rush to explain. Those were companies he “put into a chapter”—presumably Chapter 11—and the times he “used the laws of the country” to cut deals with creditors and avoid financial ruin. Trump has sought bankruptcy protection for some of his biggest investments, including the Trump Taj Mahal, Trump Castle, and the Plaza Hotel.
Trump is heading in a similar direction with his campaign. As of May 31, it had only $1.3 million in cash, and a whopping $45.7 million in debt. Campaigns can’t really go bankrupt, as they’re pretty light on assets. But as the adage goes, campaigns don’t end—they run out of money. Trump has staved off that eventuality for now by shouldering a heavy load of loans.
....
Trump owed far more to creditors in April than any other federal campaign committee, according to FEC records. While aggregate statistics aren’t yet available for May, he’s probably still at least toward the top of the list. No other major presidential campaign in the last eight years has saved so little or gone so deeply into debt. Hillary Clinton has more than $30 million in the bank and carries only $600,000 in loans; Bernie Sanders, he of the $27 donation, is debt-free and holds about $5 million in reserves.
Even Ted Cruz has more money than Trump: $6.8 million, almost three times the billionaire’s campaign savings. Trump’s debt is unprecedented in recent history, blowing away even John McCain, whose money problems in early 2008 threatened his bid.
....
The Atlantic
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