New Yorkers know how to get things done, even in the toughest of circumstances. Everyone knows that Donald Trump has been under huge financial and legal pressure to post a $435 million dollar bond so he can appeal a New York civil judgment for allegedly overvaluing his assets.
A huge financial win for Trump is looming on the horizon that may just save the day for him.
Here’s how it goes: Trump’s company, “Trump Media,” owns a social media site called “Truth Social.” A publicly traded shell corporation called “Special Purpose Acquisition Corp., ‘SPAC,’” is about to acquire 100% of Trump Media’s asset, “Truth Social.” In turn, they say, Donald Trump will acquire about 79 million shares of SPAC. The new trading symbol for SPAC is DJT, by the way. (Get it?) The deal could be worth as much as $3.4 billion to Mr. Trump.
Unfortunately for presumptive Republican nominee, Mr. Trump, the deal appears not to provide the immediate “liquidity” he needs to stave off New York’s Attorney General Letitia James from grabbing his assets.
It has been reported that SPAC has what is called a “lock up” provision that prevents insiders, and Trump will now be one, from selling newly issued shares for six months.
On the other hand, Trump will be a majority shareholder when the deal goes through. Majority owners have power in the board room. They often have a way of making “arrangements” happen quickly for themselves. Assuming, however, that a board meeting and/or whatever else might be necessary – in this situation – can’t happen quickly enough to fend off Letitia’s moves, Trump may have come up with another New York solution.
Monday’s deadline to post the $464 million bond is looming. In these circumstances, a “hard money lender”- someone who loans money at 10% (with an extra 3% as viggorish) will likely be called upon to ward off the hounds.
