Donald Trump and the banks backing his flailing Trump International Hotel & Tower project in Chicago have reached a deal to temporarily suspend litigation.The parties now have 90 days to figure out a settlement, and Trump has time to try to complete the 92-story building without the looming threat of foreclosure. The Wall Street Journal reports (subscription required) that "Sales of 339 hotel rooms and 486 condominium units have come in below original estimates and the project's current projected revenue remains short by nearly $100 million needed to pay off the senior first mortgage loan."
Part of the problem is that the buyers who agreed to purchase units two years ago are having second thoughts about closing, given that the prices they agreed to are now inflated. Like the rest of the nation, Chicago's real estate market has been dragged down by foreclosures, short sales and pessimistic consumer sentiment.
The best part is that while Trump's casino empire works its way through the bankruptcy process and his Chicago development is mired in litigation brought about by poor sales, the new season of Celebrity Apprentice is also tanking. Roger Catlin writes that "'Celebrity Apprentice' is a train wreck and a sad showcase for people who want to get on prime time TV, even if it's NBC." A made-for-TV movie starring Tom Selleck beat Trump in the ratings.
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Reader Comments (Page 1 of 1)
3-04-2009 @ 9:42PM
goran said...
fool me once, shame on you, fool me twice shame on me. shame on you banks for lending money to trump again for one of his unsuccessful projects. force him to pay his personal guarantee (OH! forgot he might not even have the $40Million). That's why he filed a lawsuit, because he does not have the money to pay. He is once again over leveraged. this should be the final straw.
3-09-2009 @ 11:23PM
vickiehightides said...
You have no idea,This is the man! He could land in a pile of s--t,and come out smelling like a flower shop.