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Property mogul trumped by billion dollar debts
Donald Trump, the casino and hotel entrepreneur, is facing the second big financial battle of his career, following an assessment on his businesses by auditors, Ernst & Young.
The bank warned that Trump Hotels & Casinos Resorts (TH&CR) would need a cash injection of $440m (£240m), if it wishes to continue operating.
It revealed that TH&CR debts had reached $1.8bn (£980m).
Shares in the company fell 12.5 per cent in morning trading, following the publication of the letter from Ernst & Young to the company’s board.
It is believed that Credit Suisse Boston would be prepared to inject $400m (£218m) into TH&CR, in exchange for a majority stake in the company.
Any such move would remove Mr Trump as chief executive, although he would still remain chair of the board. Details: www.trump.com
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