Trump Ocean Club files for Chapter 11

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trumpclubDon't  say we didn't warn you. Newland Properties, the developer of the embattled Trump Ocean Club in Panama - the most intensely hyped real estate project in the history of the country - is filing for Chapter 11 - and that is just one step from bankruptcy.

In a press release, Duncan McGowen of Punta Pacifica Realty explains that the move is related to restructuring of debt. Trump Ocean Club has for years now had trouble making bond payments.

The statement that the trouble at Trump Ocean Club only affects bond holders sounds like optimistic spin to us. If the project goes bankrupt, debt holders may very well seek compensation in ways that affect those who have bought into the scheme.

The project has suffered from its inception from bad (ripped off) design, bad marketing, financial woes and floodings.

Just weeks ago, Dutch financial daily Financieel Dagblad published a propaganda piece masquerading as journalism by one Eefje Rammeloo, who claimed that Trump put Panama on the real estate map and who souped up her story with supposedly casual and coincidental meetings with Ricardo Martinelli while having his morning coffee in a local coffee shop. Dutch investors are quoted saying that Trump "laid the foundation" for Panama's real estate sector and so on. No word at all about how the project had been defaulting on its bond payments for years, with the predictable result of entering into bankruptcy. The "foundation of Panama's real estate and construction business"? Sounds more like quicksand to us.

This story will be further updated as more information becomes available.

5 thoughts on “Trump Ocean Club files for Chapter 11

  1. I think the death knell for this project was when the whole street flooded with poo-laden water
    exactly on the grand opening day. Talk about a bad omen.

  2. Reading their press release TOC is the premeir property providing solid rental returns…..yeah right what a bunch of morons to post that on their same BK notice.

    Probably have lazos also here in the interior with the other spin doctor projects that haven’t materialized either

  3. The Trump name and “debt restructuring” and “bankruptcy” are words and phrases that often been read and spoken together over the past 20 years. And yet suckers are still sold by anything with Trump on it. He tanked in Atlantic City time and time again, and even sold stock in a public offering between two of his three bankrupcies there. He’s clever, though, about the structure of his national/international hotel/condo expansion. I think the gig is that the franchiser gets spanked with a huge upfront fee, then leases the Trump name indefinitely. Then the franchiser goes about building his skyscraper and Trump maybe gets the hotel management rights or contract. Very little risk to Trump himslf in an event such as this.

  4. Pingback: Is the White Tower washing black money? | Bananama Republic

    • In reality everything built is all questionable, here in Panama!

      The world financial situation does not favor Panama in any way or form!

      Yet, Panama is putting up tall buildings as if it was right next door to Dubai!

      Every thing built is substandard, ill engineered, and improperly maintained!

      Just waiting for a 6.5 or better earthquake to bring down these Narco towers, along with all the fires, since the fire department does not have the enough or proper equipment to fight these fires since there is not enough water now to combat even a small apartment fire safely even on the ground floors!

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