Former President Donald Trump is facing a significant financial challenge as deadlines loom to pay off over half a billion dollars in court judgments. With a New York appeals court judge denying his request for more time to satisfy a $454 million judgment from a civil fraud case, and a federal judge considering whether to grant his request to delay or post a fraction of an $83.3 million judgment from a defamation case, Trump is under pressure to come up with the funds.
Trump’s lawyers have estimated that it could cost him an additional $104 million to post the bonds needed to satisfy the judgments, raising questions about how he will come up with the total amount of $537 million. With big banks refusing to lend to him, Trump may be forced to sell properties or seek funding from alternative sources.
The possibility of a fire sale of properties or securing a bond, a less common scenario for an individual due to the massive amount involved, are being considered as options for Trump. Underwriters typically require cash or easily sellable assets as collateral for a bond, presenting a challenge for Trump given the size of the judgments.
Lawyers for E. Jean Carroll, the plaintiff in the defamation case, have referenced Trump’s financial difficulties when arguing against delaying or lowering the bond. Ultimately, the court will decide what assets will be accepted to secure the bond, but Trump’s cash crunch has left him in a challenging position as he scrambles to raise the necessary funds.
