Tuesday, March 3, 2009

A Trump Truce

Did anyone not see this one coming? From Crain's:

Donald Trump and the lenders on his Chicago skyscraper have agreed to put their legal dispute on hold as the developer wraps up construction of the 92-story tower.

Mr. Trump and Deutsche Bank Trust Co. Americas sued each other last fall over a past-due $640-million construction loan on the project. The developer claimed that the financial crisis gave him the legal right not to pay back the loan, while the bank demanded that Mr. Trump honor a $40-million personal guarantee he made on the loan.

But the two sides have reached an agreement “that provides for the suspension of litigation between the parties as discussions move forward,” according to a news release issued Tuesday.

“This agreement is evidence of the open and active dialogue that has continued between Deutsche Bank and The Trump Organization and of the parties’ combined interest in the success of this outstanding project,” Mr. Trump said in the release. A Deutsche Bank spokesman declined to comment.

Call me a little bird, but this will be quietly put to bed down the road. Yes, The Donald knows what to do when or he would not be where he is. Unfortunately we don't get to test the waters of the force majeure defense.

4 comments:

Doug Cornelius said...

Too bad. I was hoping we would get some interesting real estate law out of this financing crisis.

David Stejkowski said...

Well, we're not done yet!

Colleen Sheridan said...

Can we create reciprocal links? I blog about commercial real estate issues. www.blog.mysquarefeet.com

David Stejkowski said...

Colleen:

Done on my end!

--David

 
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