NYT: creditors wrote off Trump $ 270 million in outstanding debts
Donald Trump has been written off more than $ 270 million in debt since 2010 after he was unable to pay creditors money to build a skyscraper in Chicago, reported Oct. 27 The New York Times.
An analysis of Trump's tax reports by The Times shows that after the Trump International Hotel and Tower in Chicago ran into financial problems, major banks and hedge funds gave Trump years of extra time to pay off debt, much of which ended up being written off.
And while previously undisclosed debt relief usually results in large tax bills, Trump appears to have managed to barely pay federal income taxes on them, the newspaper said, in part due to significant financial losses suffered by his other businesses.
Trump Organization chief lawyer Alan Garten told The Times that the organization and Trump have paid all necessary taxes on the debts written off.
“These were all commercial deals that were voluntarily entered into between the parties many years ago after the 2008 global financial crisis and the resulting collapse of the real estate markets,” Garten said.
On the morning of October 28, Trump defended himself on Twitter: “I was able to make a profitable deal with numerous creditors for a large and very beautiful tower. Doesn't that make me smart, not the bad guy? "
Still, news of Trump's massive debt write-off is taking a fresh blow at the business tycoon's brand on which the president has built his political career, just a week before election day.
Trump arranged for two of his limited companies to borrow more than $ 700 million for development in Chicago and went to Deutsche Bank for most of the money, according to The Times.
The bank agreed to provide a $ 640 million loan for the project, the newspaper said, but after construction delays the loan had to be repaid while parts of the building were still pending.
While Deutsche Bank initially granted Trump a grace period to repay the loan after the bank rejected an additional renewal request, Trump sued the bank alongside Fortress Investment Group, which provided a $ 130 million project loan, and others. banks and hedge funds that bought some of these loans, the Times reports.
According to the newspaper, Trump accused Deutsche Bank of "predatory lending practices." The bank responded with its own lawsuit demanding repayment of the loan.
In July 2010, Deutsche Bank, Fortress and Trump entered into a private agreement without disclosing terms, the Times reported. But Trump's federal tax returns and credit document show he had about $ 270 million in debt written off.
The new details, gleaned from the president's tax records, are based on previous New York Times reports detailing how Trump has not paid any federal income taxes since 2000, as he said he had lost significantly more than he earned.
On the subject: NYT received Trump tax returns: he has not paid taxes in years
Trump paid only $ 750 in federal income tax in the year that he took office and the year that he first entered the White House, The Times reports.
Trump denied the New York Times version and said he was paying “a lot” of federal income taxes.
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