The Trump Organization, like so many American businesses these days, is experiencing a tremendous downturn in revenues, and because the president’s family company is heavily leveraged and owes millions in payments for loans it has taken out, could be on the verge of total financial collapse and the seizure of its assets, according to the New York Times:
“Representatives of Mr. Trump’s company have recently spoken with Deutsche Bank, the president’s largest creditor, about the possibility of postponing payments on at least some of its loans from the bank.
“And in Florida, the Trump Organization sought guidance last week from Palm Beach County about whether it expected the company to continue making monthly payments on county land that it leases for a 27-hole golf club.”
Many of the Trump properties are hemorrhaging money, estimated to be several millions of dollars a day, even though the company has left some hotels and clubs open, despite the call by medical experts to close all such gathering places to slow the spread of COVID-19 across the country.
Creditors are somewhat reluctant to make a big deal out of the payments they’re owed, but can only let the matter go on for so long before taking further action, which could include foreclosure and seizure of assets, the Times notes:
“Because of his history of defaults and bankruptcies, Deutsche Bank insisted that Mr. Trump provide personal guarantees on those loans, meaning that the bank has recourse to his personal assets if he were to stop paying back the money.
“Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials. Seizing the president’s personal assets would be an unattractive proposition. But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump.”
At the present time, it’s believed Trump owes Deutsche Bank approximately $350 million. The German bank has loaned an estimated $2 billion to the Trump Organization since 1998. It’s one of the few banks that has taken a chance on Trump despite his history of defaulting, which has led some to suggest a foreign government or agency (Russia? Organized crime?) might be guaranteeing the loans in exchange for laundering money through real estate purchases from Trump’s company.
One thing seems certain: The Trump Organization is in a deep hole, and there doesn’t seem to be a way it can dig itself out unless a major investor comes along and pays all of the company’s debts. If that should happen, it’ll be interesting to see who takes that much of a chance on a failing entity.
3 replies on “Cash-Strapped Trump Organization Is Reportedly On The Brink Of Financial Collapse”
American this is a Demonic out of control CLOWN who couldn’t care a less about his people. Only what he can grift. He will get away with this.
As his latest class action court case works works it’s way forward Deutch Bank will be forced to act to protect themselves from sever loss. That will bankrupt Trump and his criminal enterprise sooner.
The Russian mob, including Sergei Mikhailov and cohorts, has bailed out the Cowardly Cantaloupe in the past, but they are undoubtedly weary of his failures. Nonpayment on their investment might involve a lot more than political favors, especially if his own cabal loses power this November.