Trump Must Make Payment of $42.6 Million by Tonight

New York developer Donald J. Trump has until midnight tonight to make a $42.6-million payment to his creditors or be in formal default on the bonds of Trump Castle, one of three casino hotels that he owns in Atlantic City, N.J.

As the deadline loomed larger, lenders continued trying to hammer out a restructuring of Trump’s finances that would involve his main bankers loaning him another $65 million and suspending interest payments on a large chunk of his estimated $2-billion debt.

Trump would use loan proceeds to meet his bond obligations, but the agreement reportedly calls on him to scale back his lavish lifestyle and hire a chief financial officer. If an agreement falls through, Trump may be forced to seek protection from his creditors in bankruptcy court.

The agreement reportedly would limit Trump’s monthly charitable contributions to $100,000 and his personal and household expenses to $450,000 a month this year, $375,000 a month in 1991 and $300,000 a month in 1992.

A spokeswoman for the Trump Organization said Trump had no comment on the reports or the negotiations.

Late Monday night, a French bank, Societe Generale, agreed to support the rescue package. That left Dresdner Bank of Germany as the lone holdout blocking the deal, a banking source said. Trump’s many other lenders have reportedly agreed to go along.

Chase Manhattan and Citibank executives made calls overseas Monday, urging their Dresdner counterparts to go along, he said.