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Trump Reportedly Near Deal to Ease Debt

April 25, 1991|From Associated Press

NEW YORK — Donald J. Trump is near a deal with some of his bank lenders that would give them several of his properties in return for releasing him from millions of dollars in loans, according to a published report.

NWA Inc., the parent of Northwest Airlines, would buy the Trump Shuttle airline, which flies between Boston, New York and Washington, the New York Times reported in today's editions.

If Trump were released from the loans, which he personally guaranteed, it would lower the likelihood of personal bankruptcy if the loans went bad. The banks have loaned Trump nearly $2 billion.

The agreements, according to bankers and confirmed by Trump, the newspaper said, are for:

* Bankers Trust to take nearly all of Trump's 50% interest in New York's Grand Hyatt Hotel.

* Citicorp to get his 27% share of the Alexander's department store chain.

* NWA Inc. to take over the Trump Shuttle and several dozen banks to get an equity interest.

* Trump's yacht to go to Boston Safe Deposit & Trust Co., a subsidiary of American Express.

* His Regency Hotel in Atlantic City, N.J., to be put on the block, with most of the proceeds to go to Manufacturers Hanover.

The disposition of other properties, including the Plaza Hotel, has not been decided.

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