Deutsche Bank AG (NYSE: DB) has sued Donald Trump, demanding that he pay a $40 million personal guarantee that was part of a $640 million construction loan that Deutsche Bank originated in 2005. The loan came due on November 7th with an outstanding balance of $334 million.The loan is related to the development of the The Trump International Hotel & Tower in Chicago. The building is expected to be finished in early 2009, and the lower floors are already open for business. According (subscription required) to The Wall Street Journal, the building will be the second largest in the United States. Last month, Trump sued Deutsche Bank for an extension on the loan, claiming that the financial meltdown had triggered the force majeure clause of the contract that normally applies to wars, riots and acts of God.
A New York State Court rejected Trump's argument, but apparently he still hasn't coughed up the money. Now he's being sued for it.
It appears that Trump is back in trouble with lenders. Last week, Trump International Resorts (NASDAQ: TRMP) disclosed that it had missed an interest payment.
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