Bonn, Paris Banks Key to Trump Rescue

A West German bank and a French bank hold the key to Donald Trump’s hopes of raising a $65-million loan in the next two days and avoiding a default on a casino bond issue, a banking source said today.

The developer has been meeting with a syndicate of banks in recent weeks in an effort to work out a complex restructuring and avert what could be a string of defaults in Trump’s real estate and casino empire.

Under a proposed plan, the banks would extend Trump money to make overdue payments on the bond issue and suspend some payments on his $2 billion in bank loans in exchange for equity in some of his properties.

A $20-million bridge loan is being prepared to tide Trump over until the larger loan is approved, The New York Times reported today.

The newspaper, quoting unidentified bankers involved in the negotiations, said before the 30-day financing can be extended, an agreement on the bigger loan must be obtained from all the banks that have a stake in loans outstanding to the developer.

The collateral on the bridge loan would be an array of Trump’s personal property, including his interest in the Trump Tower retail complex, another New York condominium building, Trump Parc, residential condos he owns in both, his private airplane and some stores in Trump Plaza.

Terms of the broad loan agreement include stringent restrictions on Trump’s personal and business finances, the newspaper said.

The restrictions limit Trump’s monthly charitable contributions to $100,000 and stipulate that his household and personal expenses not exceed $450,000 a month for the rest of this year, $375,000 a month in 1991 and $300,000 a month in 1992, the newspaper said.

Trump’s main banks--Citibank, Chase Manhattan, Bankers Trust and Manufacturers Hanover--have agreed to the restructuring.

But Dresdner Bank AG and Societe Generale, which own parts of some Trump loans arranged by Chase, are balking at terms of the deal, a banker with knowledge of the talks said.

“If they don’t agree, there won’t be any deal,” said the source.