Banks that lent millions to Donald Trump could move to seize whatever collateral he put on the table to get the loans after his accounting firm warned that the financial statements it prepared for Trump cannot be relied upon, bankruptcy attorney Steven J. Solomon told The Daily Beast.
Solomon, a Miami-based lawyer who leads the bankruptcy practice at the national law firm GrayRobinson, spelled out the gravity of the situation for the Trump Organization during his interview with the oulet.
“It’s incredibly significant. And frankly, I’ve never heard of a situation where an accounting firm is going back retroactively 10 years,” he told The Daily Beast. “This would be a trigger point. If your lender doesn’t have confidence in you because it can’t rely on the information, you can’t be friends anymore.”
The attorney added that the lenders now “could move to seize whatever collateral Trump put on the table. That could include whatever assets Trump put at risk to borrow what Bloomberg calculated to be $100 million for Trump Tower in Manhattan or another $125 million for the Trump Doral golf resort.”
But other bankruptcy lawyers told The Beast that banks would be hesitant to suddenly call their loans back for fear that it could start a financial landslide that ultimately dooms Trump and reduces the chance that the money will be paid back.
Read the full report on The Daily Beast.
