Tag: Bankruptcy

Categories
Crime Donald Trump

Attorney: Trump Will Probably Have To File For Bankruptcy Very Soon

Now that he’s on the hook for over $450 million in fines, failed former president Donald Trump is facing one of three options when it comes to raising the cash he needs: Sell properties, find a wealthy benefactor who will pay the tab for him, or wind up having to file bankruptcy.

That’s the bottom line, according to attorney and NBC legal analyst Lisa Rubin, who told MSNBC host Alex Wagner, “It could also prompt him to file for personal bankruptcy because, again, in this order, Donald Trump and the business entities that were found liable, are jointly and severally liable. That means that any one of them can be liable for the whole of the judgment attributed to them and that also means that Donald Trump can’t escape this just by plunging those business entities themselves into bankruptcy, because that would leave him individually on the hook for the totality of it.”

“The only way to escape it altogether would be to file for personal bankruptcy, which would place an automatic stay on further litigation, including judgment execution,” Rubin added.

Rubin also noted that Trump can’t borrow his way out of judgments against him because he’s also banned from obtaining loans from any financial institution chartered in New York.

The shame of filing personal bankruptcy would be the perfect karma for Donald Trump.

 

Categories
Crime Justice Department

Justice Department Accuses Alex Jones Of Potential ‘Abuse Of The Bankruptcy System’ In Court Filing

On the eve of a bankruptcy hearing for InfoWars founder Alex Jones, the Justice Department has weighed in and accused Jones of possible “abuse of the bankruptcy system.”

According to Elizabeth Williamson of the New York Times, a DOJ trustee in Texas filed a formal objection to Jones’s bankruptcy petition, claiming that it may be fake and an attempt to avoid paying compensation to the families of the children who were killed in 2012 at Sandy Hook Elementary. Jones accused the families of being “crisis actors.”

Williamson reports:

On the eve of tomorrow’s hearing on Jones/ Infowars’ bankruptcy case in Texas, DoJ’s regional trustee files an objection with the judge: Why aren’t Jones and his company, both defendants in Sandy Hook defamation suits, named as debtors?

Jones asked the bk court to approve a paltry “litigation settlement trust” without any input by the families, nor any view of his finances. That risks “purposefully stacking the deck against the most vulnerable of creditors,” trustee writes.

On Sunday, Bloomberg was the first to report that Jones planned to file for bankruptcy as a way of avoiding complete financial collapse:

Companies owned by far-right radio host Alex Jones are getting advice from restructuring advisers and considering options including a potential bankruptcy filing after being hit by lawsuits over Jones’s conspiracy theories, according to a person with knowledge of the matter.

A Chapter 11 filing would aim to allow Jones’s businesses, such as Infowars and Free Speech Systems, to keep operating while pausing civil litigation against them, said the person, who asked not to be identified because the discussions are private.

 

Categories
Business Donald Trump The Trump Organization

Trump Organization Facing Financial Collapse After Accounting Firm Cuts Ties: Report

Now that his longtime accounting firm has given him the boot and declared that his financial statements cannot be believed, failed former President Donald Trump and his company, the Trump Organization, are facing a major financial crisis that could well send the real estate mogul’s business into collapse .

On Monday, Mazars USA LLP released a letter stating that the Trump Organization’s financial statements from 2011 through 2020 “should no longer be relied upon,” which suggests the ex-president’s company has engaged in systematic fraud in order to obtain large bank loans to keep Trump Org. afloat.

With nearly $600 million in loans coming due over the next four years, Trump is already trying to locate financing that will allow him to stay in business.

But banks are probably not going to be willing to help prop up a company that’s facing legal jeopardy on multiple fronts and has now been outed as having lied about its assets.

According to attorney George Conway, the former president is facing almost certain bankruptcy, telling CNN host John Berman:

“This is about as calamitous a thing as could happen to a business as you could imagine, other than getting indicted and going bankrupt, and this could lead to going bankrupt.”

Trump biographer Timothy O’Brien echoed Conway in an article he wrote for Bloomberg, noting:

The Trumps, like most real estate developers, rely on massive bank loans to finance their operations. Their company has more than $590 million of debt coming due within the next four years, and Trump himself has personally guaranteed more than half of it. Banks are likely to find it untenable to keep doing business with a company or individuals already rejected by their own accountants.

The Trump Organization is now on the brink of complete financial collapse, and it could be only a matter of months before indictments are handed down in New York against the former president’s company and other members of his family (Don Jr., Eric, and Ivanka) who work there.

Perhaps George Conway put it best with this tweet: