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:
