• Nougat@fedia.io
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    9 months ago

    … arguing that he shouldn’t have to put up the money and worrying that he “would be forced to mortgage or sell Great Assets, perhaps at Fire Sale prices, and if and when I win the Appeal, they would be gone.”

    One, they’ve had plenty of time to gracefully liquidate assets necessary to meet this bond. Surely they could have entered into sale contracts that were contingent on the outcome of the civil trial.

    Two, at this stage, the value would not simply disappear; it would be put into an escrow for the bond. Should the appeal be successful, that bond amount is returned.

    But why would they need to sell these properties in the first place? Why not just use the properties as collateral for loans, and use the loan value for the bond (and then payment of the judgment when the appeal fails)? Because there’s already loans out there that use the properties as collateral - and based on the judgment, probably at highly inflated property values. They can’t get loans against the properties. This is what Cohen means when he says “leveraged to the hilt.”

    This all means that even if the properties get sold, there’s little to no equity left in them to use as funding for the bond. I’m willing to bet that Trump’s panic is not at all about having to pay the bond amount, and has everything to do with the truth of his actual value being revealed.

    • agent_flounder@lemmy.world
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      9 months ago

      So, he’s desperate because the whole charade is starting to collapse. Interesting.

      Kind of like those movie set facades.

      • Dkarma@lemmy.world
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        9 months ago

        Yep …there’s no way he’s got 500m or more in equity anywhere even mal.
        Rnc coffers are next.