Excellent thread, which adds a twist to the question that was being asked before the indictments: will the indictments cause the Trump Org to go under, and specifically, will its lenders demand immediate repayment of loans?
https://twitter.com/kurteichenwald/status/1410676547124707336
2/ I’m skeptical this indictment alone, particularly bc it doesn’t encompass the company’s core activities, would lead to that result (& it’s notably not an argument the Org’s lawyers have made publicly). If they’re performing, banks like $ & wouldn’t have huge incentive. But...
3/ Eichenwald reminds us that a key debt covenant relates to accurate books and records & that’s likely in the Org’s loan agreements. First step is for lenders to ask questions - if they find false entries, which it seems likely they will, the Org could be in jeopardy.
4/ I would have expected Trump Org’s lawyers to argue precisely this to the DA in an effort to fend off indictment, as ADAs are required by charging policy to consider such arguments. If they did, it wasn’t persuasive to them. We will have to see if the banks carry through.
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