Crain's Chicago Business reports:
The lead lender on the Trump International Hotel & Tower is suing Donald Trump, seeking to collect on a $40-million personal guarantee the brash New York developer made on the 92-story high-rise.
Deutsche Bank Trust Co. Americas filed the suit Friday in New York state court in Manhattan, alleging Mr. Trump defaulted on the loan Nov. 7 by not paying off the remaining $334.2 million due to Deutsche Bank and its syndicate of lenders.
The move follows a suit Mr. Trump filed earlier this month, accusing Deutsche Bank and its syndicate of wrongly refusing to extend the Nov. 7 maturity date of the $640-million loan for the project at 401 N. Wabash Ave. Mr. Trump’s suit accuses the lenders of hindering his ability to sell condo-hotel units and also invokes a “force majeure” clause in the loan, claiming the world financial crisis is an extraordinary event that permits a loan extension.
The problem?
Sales of the unfinished tower’s condominium and hotel units have been stuck in roughly the same place for more than two years as the condo market has fallen into a deep slump and the credit markets have frozen up.
Good luck to all condo owners in that building.
