To avoid having to file for bankruptcy, Trump met with four of his
major lenders, Citibank (C), Bankers Trust, Chase Manhattan
Bank, and Manufacturers Hanover Trust Co.—now owned by
JPMorgan Chase Bank, National Association. The banks were
concerned that if they foreclosed on his properties they, too,
would lose tremendous amounts of money.
AN ADDITIONAL LOAN
In the end, Trump convinced the banks to loan him an additional
$65 million, which he'd use to keep his businesses afloat.
The banks also agreed to defer, for five years, the interest and
principal payments on Trump's outstanding loans. Some of
Trump's debts were paid down with funds from the sale of his
assets, which included an airline company (Trump Shuttle) and
a yacht (which was sold to Saudi billionaire Prince Al-Waleed bin
Talal). Trump also sold his controlling stake in the Plaza Hotel
and turned his Florida beach house, Mar-a-Largo, into a resort.
The Trump Organization famously revealed it was $5 billion
in the hole in 1990, with as much as $1 billion guaranteed by
Donald Trump personally. The business survived thanks to a
combination bailout and deferment by more than 70 banks.
Many point to the 1988 purchase of the Taj Mahal Casino as a
VIEW FROM DAMAC HILLS overlooking Trump
golf course and club, Dubai United Arab Emirates.
104 The TRUMP RALLY Publication