On Thursday, The New York Times reported that the Trump Organization is in talks with a major creditor to delay loan payments, as the coronavirus pandemic has shuttered their properties and their profits have imploded.
“With some of its golf courses and hotels closed amid the economic lockdown, the Trump Organization has been exploring whether it can delay payments on some of its loans and other financial obligations, according to people familiar with the matter and documents reviewed by The New York Times,” wrote David Enrich, Ben Protess, and Eric Lipton. “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.”
The Trump Organization is reportedly in similar talks with the government of Palm Beach County, Florida, which has leased public land to the company for one of its golf clubs. Neither Deutsche Bank nor Palm Beach County has agreed to anything so far.
Eric Trump, who helps run the company, said, “These days everybody is working together. Tenants are working with landlords, landlords are working with banks. The whole world is working together as we fight through this pandemic.”
Deutsche Bank in particular, according to the Times, may have an incentive to strike a deal.
“Ever since Mr. Trump’s election, Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials,” said the report. “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, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank.”
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