Donald Trump is not in a good position. The former American president and his two sons, Donald Jr. and Eric, were ordered on February 16 to pay extremely high financial reparations. About $464 million for Donald Trump, eight million dollars for his sons. A decision by New York judge Arthur Engoron, as part of the civil trial over his real estate empire, for having overvalued his assets in order to obtain better financing conditions.
The former president and his sons appealed the judgment, but they must still put up 120% of the planned fine as security. On Friday, Donald Trump assured that he had nearly $500 million at his disposal, in a message on his Truth Social network. In recent days, he claimed to have suffered refusals from multiple guarantors, often insurance companies.
The former Republican occupant of the White House, who dreams of being re-elected in November, still denounces “a political witch hunt” led according to him by the Attorney General of the State of New York Letitia James, “racist and corrupt “, and Judge Engoron “controlled by the Democratic clique.”
Threats of seizure of his property
In a 5,000-page court document on Monday, Donald Trump’s lawyers argued that a bond of $464 million was “practically impossible”, claiming to have been refused by around thirty specialized guarantee companies.
Failing to be able to raise the necessary sum, New York Attorney General Letitia James, who initiated proceedings against the Trump Organization and its leaders, could seize some of its assets. For several days, speculation has been rife about the buildings that could thus be taken from Donald Trump. The famous Trump Tower on 5th Avenue as well as a golf course in the upscale Westchester County, just north of the megalopolis, would be targeted according to the American press.
A few days before the deadline, Donald Trump resolved to call for the solidarity of his supporters. According to RFI, he sent them an email to ask for financial support. The Democrats “think that you are going to abandon me”, he wrote, seeing behind his conviction a plot to make him give up the presidential election. His image could also be damaged, six months before the presidential election. For former prosecutor Andrew Weissmann, if Trump does not pay, “his image will change radically in the eyes of many people because he has always presented himself as a successful billionaire.”
Truth Social, the lifeline?
But the former president has not said his last word and could well escape humiliation thanks to an astonishing financial package linked to the upcoming IPO of his social network, Truth Social. Donald Trump could thus recover a potential gain of 3.5 billion dollars.
And for good reason: Digital World Acquisition Corp (DWAC), a specialized American acquisition company, listed on the stock exchange since April 2021, will merge with Truth Social, the social network founded by the former president after his ouster from Twitter in January 2021. The operation obtained, on Friday March 22, the long-awaited green light from DWAC shareholders, who “are all convinced ‘Trumpists'”, underlines the Wall Street Journal.
Concretely, Trump Medias and Technology Group (TMTG), the group owned by the real estate mogul, will merge with DWAC, which is a Special purpose acquisition company (SPAC), a company whose sole aim is to enable a other to access the Stock Exchange more easily than through the traditional route of a formal introduction. TMTG, of which Donald Trump himself is the main shareholder (up to 60%), will control several tens of millions of shares in the new listed company.
The agreement between TMTG and DWAC provides for a six-month lock-up period during which shareholders cannot sell their shares on the market. However, nothing would prevent Donald Trump from offering his securities as collateral to the courts or from obtaining a loan based on the value of these securities. Which could allow him to save his honor and his property.