Trump Deal With His Creditors Reported

Donald Trump has reached a tentative debt-restructuring agreement with his bank creditors that would provide him with both money and time to mend his troubled empire, according to a report published today.

The Wall Street Journal quoted sources close to the negotiations as saying the banks agreed over the weekend to lend Trump an additional $50 million and to suspend interest payments on $2 billion in debt.

In exchange, Trump would pledge some of the remaining real estate or casino assets that aren’t completely collateralized, including the Trump Plaza Hotel in Atlantic City, N.J., and the Trump Tower building in Manhattan, the newspaper said.

Trump spokesmen were not immediately available this morning to comment on the Journal report.

Trump confirmed last week that he was negotiating with major banks to restructure his debt. The banks reportedly have become concerned that Trump may not be able to handle the billion-dollar debt he ran up buying big real estate and casino properties given the current slowdowns in both industries.

Recent purchases, such as the Plaza Hotel and the Trump Shuttle airline, have added to Trump’s financial woes since neither is reported to be making money.

Trump’s biggest bank creditors--including Citicorp, Chase Manhattan Corp., Bankers Trust New York Corp. and Manufacturers Hanover Corp.--planned to discuss the weekend debt-restructuring deal today with about 10 smaller creditors, the newspaper said.

“If any one of the other banks do not go along, then the deal does not work,” one banker told the newspaper.