Trump International Golf Club Puerto Rico $78 million in debt
Trump International Golf Club Puerto Rico filed for bankruptcy as Donald Trump, the billionaire real estate mogul who licensed his name to the property, upped his campaign for the White House.
The financially troubled golf club listed $9.2 million in assets against $78 million in debt, according to the petition filed in San Juan on Monday.
The golf club’s ties to Trump, who is seeking the Republican presidential nomination, nevertheless go no further than the name, Bloomberg reported.
Donald Trump isn’t involved in the operations of the golf course and a “difficult business climate in Puerto Rico” resulted in the owner’s financial woes, said Eric Trump, the presidential candidate’s son and an executive at the Trump Organization.
“We have zero financial investment in this course,” Trump told Bloomberg. “This has absolutely nothing to do with Trump. This is a separate owner. We purely manage the golf course.”
The resort has been in default of its obligations to Trump, moreover, according to Eric Trump.
The Puerto Rico resort, which opened in March 2004 as Coco Beach Golf, was renamed in 2008 after licensing the use of Trump’s name. Trump, an avid golfer, is affiliated with 17 golf properties worldwide, according to his website. The golf division of Trump Organization Inc. owns and manages most of the courses.
The Puerto Rico property features two 18-hole championship courses in Rio Grande, which were designed by professional golfer Tom Kite. The 1,000-acre property has a 46,000-square-foot clubhouse and hosted the 2008 Puerto Rico Open, according to the Trump website.
The club received $26.4 million in municipal bonds four years ago to finance the resort’s construction, Bloomberg reported. They were downgraded to CCC- last month by Standard & Poor’s, earning junk bond status where it used to have investment grade, and mirroring Puerto Rico’s debt.