Banks ready to close deal to take Trump properties

April 25, 1991|By Richard D. Hylton | Richard D. Hylton,New York Times News Service

NEW YORK -- The empire that Trump built is about to be dismantled.

Less than nine months after signing a sweeping rescue package for Donald J. Trump, the banks that lent him nearly $2 billion to build his empire have abandoned the original agreement and are close to signing tentative agreements that would give them some of his key properties.

In exchange, the banks, including Citicorp, Manufacturers Hanover and Bankers Trust, would release him from some of the hundreds of millions of dollars in loans that he personally guaranteed.

"The negotiations are going very well," Mr. Trump said yesterday. "We've established excellent relationships with our lending institutions."

According to bankers' reports that were confirmed by Mr. Trump, those agreements would give almost all of his 50 percent interest in New York's Grand Hyatt Hotel to Bankers Trust. Citicorp would get his 27 percent stake in Alexander's, the New York-area department store chain. The Trump Shuttle airline would be taken over by NWA Inc., parent of Northwest Airlines, with several dozen banks getting an equity interest in the shuttle. Mr. Trump's yacht would go to Boston Safe Deposit and Trust Co., a subsidiary of American Express. And his Regency Hotel in Atlantic City would be sold, with most of the proceeds to go to Manufacturers Hanover.

Final terms on all arrangements are still being worked out.

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