Former President Donald Trump is grappling with a significant financial challenge as a New York civil-fraud judgment mandates him to pay $454 million in penalties and interest, with the sum increasing daily. Faced with a tight deadline to produce the funds by late March, Trump is exploring options to avoid asset seizure by the New York Attorney General. Despite efforts to negotiate a bond to cover the payment, Trump’s legal team has reported difficulties in securing such financial backing. Trump’s options for covering the cost include liquidating assets, borrowing against them, or seeking loans from associates, but each approach carries potential drawbacks and financial risks.
- Donald Trump is required to pay $454 million due to a civil-fraud judgment.
- The judgment is accruing interest at an approximate rate of $100,000 per day.
- Trump has until late March to produce the funds, or face potential asset seizure by the NY Attorney General.
- Trump’s legal team has been unsuccessful in securing a bond to guarantee payment.
- Trump’s current estimated net worth is around $3 billion, with his balance sheet showing stronger liquidity than in the past.
- His options to cover the penalty include using available cash, borrowing against assets, or obtaining loans from personal contacts.
- Asset liquidation is considered a last resort due to potential undervaluation in a quick sale.
- The appeal of the ruling could extend proceedings for a year or more, with potential for the penalty amount to increase significantly.
- If Trump wins the appeal, the financial implications would be limited to legal fees and the cost of the bond.
- Trump’s team acknowledges a lack of liquidity to cover the judgment without resorting to asset sales.
- A spokesperson for Trump has not responded to inquiries regarding his plan to finance the judgment.
- Trump recently secured a $92 million bond for a separate defamation judgment but continues to face challenges for the larger fraud penalty.
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