Former President Donald Trump is embroiled in a high-stakes financial dilemma as he grapples with a court-imposed deadline to post an unprecedented $464 million appeal bond. Trump’s legal team has openly admitted their inability to secure the bond, leaving some of Trump’s most iconic properties at risk of seizure.
A civil fraud trial concluded with New York Supreme Court Justice Arthur Engoron finding Trump liable for fraud, resulting in a judgment of $454 million. The added daily interest has now ballooned the total to $456.8 million, an amount Trump is required to secure through a bond to automatically pause the enforcement of the judgment while he appeals the ruling.
According to his lawyers, despite the former president’s “diligent efforts,” it is “impossible” for him to secure a bond for the full amount by March 25. The predicament reveals a stark contrast to Trump’s self-professed financial status, having claimed last year to possess “substantially in excess of $400 million in cash.”
Trump’s inability to post the bond stems from his organization’s substantial investments in real estate, which bonding companies are unwilling to accept as collateral for such a large amount. Gary Giulietti, an insurance broker consulted by Trump, stated in an affidavit that securing an appeal bond for the judgment’s full amount is a “practical impossibility” for a company like Trump’s.
The challenge is further compounded by the reluctance of Treasury Department-approved surety companies to underwrite a costly bond, with Trump’s legal team failing to find success after approaching 30 such companies. “No lender, insurer, anybody — they don’t want the real estate. They just want the cash,” explained Will Thomas, a business law professor at the University of Michigan, highlighting the difficulties in dealing with bonds of this magnitude.
Trump, not shying away from public commentary, vented on Truth Social that he might be forced to sell properties at “fire sale” prices. As Trump’s legal battles continue to unfold, the situation remains fluid, with potential outcomes ranging from a sale of assets, filing for bankruptcy, or seeking third-party assistance — options that hold various degrees of complexity and risk.
Relevant articles:
– Trump’s lawyers say he can’t post $464M bond: What happens next
– New York civil fraud case: Donald Trump unable to post $464m bond, what happens next?, The Times of India, Tue, 19 Mar 2024 03:29:00 GMT
– Trump bond: Lawyers say he is unable to get $464m guarantee in New York fraud case, Yahoo News Australia, Mon, 18 Mar 2024 22:16:27 GMT
– Trump fails to secure bond for $454 million judgment in civil fraud case as asset seizures loom, Yahoo Canada, Mon, 18 Mar 2024 17:20:49 GMT