Significantly, the indictment did not trigger a default under Deutsche Bank’s loan documents. Trump and his lenders can exhale, a little. Right now, the prospects of forfeiture and foreclosure and the necessity of refinancing Trump’s loan packages are not staring back at them.
There’s an assumption that if Deutsche asks for repayment then that’s Trump done for. I’ve even seen the assumption that if the $400 million – or whatever – loans are called in then that’s that, Trump’s bust.
No, this isn’t how it works. It’s the difference in value between the properties and the loans that matters. If the properties are worth $4 billion and the loans $400 million then refinancing is as easy as you or I getting a £1,000 overdraft. If the properties are worth $200 million and the loans $400 million then Trump’s fucked. But that’s the bit that never does seem to get mentioned.
It’s insane. I keep seeing this insistence that if those loans are called then Trump’s bust. It’s just not true. Not without a lot more information over the valuations of the properties it’s not at least.