Facing bankruptcy, Donald Trump and his team have been thrown a legal lifeline. On Monday of this week, Mr. Trump faced the deadline to hand over $464 million dollars to the court as a bond after the ruling in New York found the Trump organization and some key executives guilty of fraud.
Trump had reportedly failed to raise the sum from his own wealth, around $2.6 billion, and so had sought the help of the private bond industry. Traditionally, if a defendant cannot raise a bond themselves, quasi-insurance firms can front the initial payment in exchange for regular payments. However, the industry as a whole had rejected Mr. Trump's bids for help, with his team reportedly approaching 20 of the most prominent players in this field, only to be rejected by them all. Although the reasons for this remain unclear, there have been long-term allegations against Mr. Trump of failing to pay creditors on time and the threat of more legal settlements down the line, placing Mr. Trump's solvency in question.
With all roads closed to raise the money, the Trump legal team had one last hope to avoid the state of New York seizing his assets, the likely consequence if he could not make the payment on time. A feeling possibly some of our readers might resonate with, Mr. Trump sought an extension from the court, sighting his valiant but ultimately failed attempt to raise the money in the allotted time. On Monday, the New York Appeals Court granted this extension, granting the Trump team an additional ten days, as well as reducing the initial amount due by $175 million.
In a month of legal setbacks for Trump, this serves as a limited but much-needed win. He was facing possible bankruptcy on Monday morning or the threat of New York seizing much of his real estate holdings to cover the amount. If he pays the reduced $175m bond, it would delay enforcement of the fraud judgment and protect his assets while he continues his appeal, which may be his last chance to defend himself from the consequences of his actions.
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