There's a mystery $50mil debt related to Trump Int'l Hotel & Tower Chicago
I found SEC filings related to $130mil mezzanine loan on TIHT Chicago from before loan was paid off that may shed light on the loan (but may not tie to $50mil debt mystery) /thread
I found SEC filings related to $130mil mezzanine loan on TIHT Chicago from before loan was paid off that may shed light on the loan (but may not tie to $50mil debt mystery) /thread
Both @russchoma @Fahrenthold have reported extensively on a mystery $50 million debt on Trump’s financial disclosure for Chicago Unit Acquisition LLC and in 2016
@susannecraig reported that Trump said the $ was a loan he purchased back from several banks
nytimes.com/2016/05/24/bus…
@susannecraig reported that Trump said the $ was a loan he purchased back from several banks
nytimes.com/2016/05/24/bus…
@russchoma @Fahrenthold @susannecraig A 2008 WSJ article described a $640 million senior construction loan from Deutsche Bank for Trump Int’l Hotel & Tower Chicago and $130 million mezzanine loan from group led by Fortress that had a steep $50 mil exit fee and could cost $360mil with interest
wsj.com/articles/SB122…
wsj.com/articles/SB122…
@russchoma @Fahrenthold @susannecraig In 2008 Trump sued Deutsche funders & mezzanine loan funders
Fortress Credit Corp
German American Capital Corp
Blackacre Institutional Capital Mgmt
Newcastle Investment
PCRL Investments
Dune Capital (Mnuchin’s co)
Drawbridge Special Opportunities Fund
documentcloud.org/documents/6194…
Fortress Credit Corp
German American Capital Corp
Blackacre Institutional Capital Mgmt
Newcastle Investment
PCRL Investments
Dune Capital (Mnuchin’s co)
Drawbridge Special Opportunities Fund
documentcloud.org/documents/6194…
@russchoma @Fahrenthold @susannecraig An April 30, 2009 SEC exhibit shows an exchange agreement between Newcastle Investment Corp, a subsidiary of Fortress, and several Taberna funds for approx $100 million and lists the property Trump International Hotel and Tower Chicago
sec.gov/Archives/edgar…
sec.gov/Archives/edgar…
@russchoma @Fahrenthold @susannecraig A separate April 30, 2009 pledge, security agreement and account control agreement for Fortress subsidiary Newcastle describes ‘Participation Interest’ of approx $23 million of the $130mil Fortress loan to 401 North Wabash Venture LLC
sec.gov/Archives/edgar…
sec.gov/Archives/edgar…
@russchoma @Fahrenthold @susannecraig And another filing on the same date, an April 30, 2009 pledge and security agreement between Newcastle and Bank of NY Mellon Trust references the Trump litigation
sec.gov/Archives/edgar…
sec.gov/Archives/edgar…
@russchoma @Fahrenthold @susannecraig A Jan 29 2010 exchange agreement for Newcastle Investment Corp, NIC TRS (Fortress subsidiary) & Taberna funds doesn't mention Trump but does reference April 30, 2009 indenture & 4 notes of appox $100 million - and describes 2 of 4 as 'defaulted CDO notes'
sec.gov/Archives/edgar…
sec.gov/Archives/edgar…
@russchoma @Fahrenthold @susannecraig Newcastle's 2012 annual report/10-K notes Jan 29, 2010 exchange agreement $52.1mil subordinated notes exchanged for $37.6mil+$9.7mil cash and says “Newcastle accounted for this exchange as a troubled debt restructuring involving partial repayment of debt”
sec.gov/Archives/edgar…
sec.gov/Archives/edgar…
@russchoma @Fahrenthold @susannecraig A side note on Taberna Capital Management, which specialized in collateralized debt obligations (CDOs) and is a subsidiary of RAIT financial - in 2015 they paid $21.5mil SEC fine for retaining CDO client fees from 2009-2012 and have filed bankruptcy
reuters.com/article/us-sec…
reuters.com/article/us-sec…
@russchoma @Fahrenthold @susannecraig As @russchoma described, in March 2012 the mezzanine loan was paid off and Fortress accepted $0.50 on the dollar, approx $48mil for outstanding debt just under $100mil
Based on SEC filings above, it's possible debt was transferred & reduced prior to 2012
Based on SEC filings above, it's possible debt was transferred & reduced prior to 2012
@russchoma @Fahrenthold @susannecraig It's not known if mezzanine loan connects to mystery $50 mil debt on Trump financial disclosure for Chicago Unit Acquisition LLC, which he says is a loan to himself, without any assets noted - or if the $50 mil exit fee was waived or transferred elsewhere
@russchoma @Fahrenthold @susannecraig Note - I'm not a specialist in complex real estate transactions & the SEC filings and exchange info in thread above may be standard practice, I'll let others weigh in on that - wanted to share the data related to Trump Chicago mezzanine loan for other researchers if helpful
@russchoma @Fahrenthold @susannecraig Here's a November 2016 document found by @clliday showing partial release of a 2014 mortgage by Deutsche Bank to Trump International Hotel and Tower Chicago company '401 North Wabash Venture LLC' in the amount of $53,730,977.65
@russchoma @Fahrenthold @susannecraig @clliday The $50mil Chicago Unit Acquisition debt which Trump said is a loan to himself is similar to Trump financing of his Scottish golf courses where he loans his businesses money
Are these loans tax avoidance structures? or financed opaquely by other people?
Are these loans tax avoidance structures? or financed opaquely by other people?
