Financial Accounting Blog

Monday, June 21, 2004

Debt Financing. What happens to a company when they are unable to pay the interest on their bonds? Donald Trump found out the answer to this question in May when his casino company didn't have the necessary cash to pay the interest on its bonds. The result was less control in the company for Donald Trump, who now has a diminished ownership percentage in the company. See this post from February about the agreement between Trump and the investment bankers.