Josh Marshall · Friday, December 09, 2016, 12:17 pm
TPM reader JG adds some details to my suggestion that Trump may be refusing to divest himself of his business because he can't. As JG suggests, the issue is likely not cash flow per se. But creditors often require cash flow to service debts. As a condition of borrowing he may have agreed not to divest himself of certain properties.
I'm a (very) longtime reader, and a corporate lawyer. I agree with your story today regarding the possibility that Trump can't divest. It occurred to me right after the election that it would be impossible for Trump to sell if the companies were valued less than their debt, and that it would be very unattractive for him to sell if the companies were highly leveraged, because he'd have to pay off debt and could be left with very little of the proceeds. I still think this is a likely explanation.
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