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| Trump’s Company Seeks to Ease Financial Crunch as Coronavirus Takes Toll | Trump’s Company Seeks to Ease Financial Crunch as Coronavirus Takes Toll |
| (about 16 hours later) | |
| All over the country, businesses large and small are seeking breathing room from their lenders, landlords and business partners as they face the financial fallout from the coronavirus crisis. | All over the country, businesses large and small are seeking breathing room from their lenders, landlords and business partners as they face the financial fallout from the coronavirus crisis. |
| President Trump’s family company is among those looking for help. | President Trump’s family company is among those looking for help. |
| With some of its golf courses and hotels closed amid the economic lockdown, the Trump Organization has been exploring whether it can delay payments on some of its loans and other financial obligations, according to people familiar with the matter and documents reviewed by The New York Times. | With some of its golf courses and hotels closed amid the economic lockdown, the Trump Organization has been exploring whether it can delay payments on some of its loans and other financial obligations, according to people familiar with the matter and documents reviewed by The New York Times. |
| Representatives of Mr. Trump’s company have recently spoken with Deutsche Bank, the president’s largest creditor, about the possibility of postponing payments on at least some of its loans from the bank. | Representatives of Mr. Trump’s company have recently spoken with Deutsche Bank, the president’s largest creditor, about the possibility of postponing payments on at least some of its loans from the bank. |
| And in Florida, the Trump Organization sought guidance last week from Palm Beach County about whether it expected the company to continue making monthly payments on county land that it leases for a 27-hole golf club. | And in Florida, the Trump Organization sought guidance last week from Palm Beach County about whether it expected the company to continue making monthly payments on county land that it leases for a 27-hole golf club. |
| The discussions with Deutsche Bank and Palm Beach County are preliminary, and it isn’t clear whether Mr. Trump’s company will be able to delay or reduce its payments, according to people briefed on the discussions. | The discussions with Deutsche Bank and Palm Beach County are preliminary, and it isn’t clear whether Mr. Trump’s company will be able to delay or reduce its payments, according to people briefed on the discussions. |
| “These days everybody is working together,” said Eric Trump, the president’s son, who helps manage the family business. “Tenants are working with landlords, landlords are working with banks. The whole world is working together as we fight through this pandemic.” | “These days everybody is working together,” said Eric Trump, the president’s son, who helps manage the family business. “Tenants are working with landlords, landlords are working with banks. The whole world is working together as we fight through this pandemic.” |
| The Trump Organization’s requests put lenders and landlords in the awkward position of having to accede or risk alienating Mr. Trump. | The Trump Organization’s requests put lenders and landlords in the awkward position of having to accede or risk alienating Mr. Trump. |
| Like the broader hospitality industry, the Trump Organization is poised to take a significant hit from the coronavirus crisis. In recent weeks, the company has temporarily closed its hotel overlooking the Las Vegas Strip, cut staff and services at its hotels in New York and Washington and largely shuttered its golf clubs in Florida and New Jersey. It also closed the Mar-a-Lago club in Florida, which at this time of year would normally be serving as the “winter White House,” as Mr. Trump likes to call it. | Like the broader hospitality industry, the Trump Organization is poised to take a significant hit from the coronavirus crisis. In recent weeks, the company has temporarily closed its hotel overlooking the Las Vegas Strip, cut staff and services at its hotels in New York and Washington and largely shuttered its golf clubs in Florida and New Jersey. It also closed the Mar-a-Lago club in Florida, which at this time of year would normally be serving as the “winter White House,” as Mr. Trump likes to call it. |
| Yet the company, which has a portfolio of more than a dozen golf clubs and luxury hotels in the United States and overseas, has opted to keep some of its properties open absent government orders to close, in contrast with the widespread shutdowns by some larger hotel chains. | Yet the company, which has a portfolio of more than a dozen golf clubs and luxury hotels in the United States and overseas, has opted to keep some of its properties open absent government orders to close, in contrast with the widespread shutdowns by some larger hotel chains. |
| Other companies may be able to tap into a $500 billion rescue fund that will be administered by the Treasury Department. But the economic bailout package, which Mr. Trump signed into law last week, specifically barred the president and his family from access to that money. | Other companies may be able to tap into a $500 billion rescue fund that will be administered by the Treasury Department. But the economic bailout package, which Mr. Trump signed into law last week, specifically barred the president and his family from access to that money. |
| Late last month, Mr. Trump’s representatives contacted their relationship managers in Deutsche Bank’s New York private-banking division, which caters to wealthy customers. They wanted to discuss the possibility of delaying payments on some of the hundreds of millions of dollars of outstanding loans that the Trump Organization has from the bank, according to a person briefed on the talks. The discussions are continuing. | Late last month, Mr. Trump’s representatives contacted their relationship managers in Deutsche Bank’s New York private-banking division, which caters to wealthy customers. They wanted to discuss the possibility of delaying payments on some of the hundreds of millions of dollars of outstanding loans that the Trump Organization has from the bank, according to a person briefed on the talks. The discussions are continuing. |
| Around the same time, Ed Raymundo, a Trump Organization executive in Florida, emailed and called Palm Beach County officials to discuss whether they planned to keep collecting monthly rent payments on land that Mr. Trump’s company leases from the county, according to people familiar with the talks. | Around the same time, Ed Raymundo, a Trump Organization executive in Florida, emailed and called Palm Beach County officials to discuss whether they planned to keep collecting monthly rent payments on land that Mr. Trump’s company leases from the county, according to people familiar with the talks. |
| The Trump Organization has a small amount of debt compared with other major real estate companies, which could weigh in the company’s favor as it seeks accommodations. | The Trump Organization has a small amount of debt compared with other major real estate companies, which could weigh in the company’s favor as it seeks accommodations. |
| Deutsche Bank has lent Mr. Trump and his companies about $2 billion since 1998, the only mainstream financial institution consistently willing to do business with Mr. Trump and his companies. At the time he became president, Mr. Trump owed the bank about $350 million, including on loans to buy and renovate the Doral golf resort near Miami and to develop a luxury hotel in the Old Post Office building in Washington. | Deutsche Bank has lent Mr. Trump and his companies about $2 billion since 1998, the only mainstream financial institution consistently willing to do business with Mr. Trump and his companies. At the time he became president, Mr. Trump owed the bank about $350 million, including on loans to buy and renovate the Doral golf resort near Miami and to develop a luxury hotel in the Old Post Office building in Washington. |
| Both properties are suffering in the economic shutdown. In response to Miami-Dade County’s rules, the Doral resort has ceased all operations, while the Washington hotel continues to operate, albeit with few guests and with its restaurant and bar closed. The Trump Organization rents the Washington property from the federal government, and the company had been soliciting bids from potential buyers for the lease, a process that is now on hold, The Washington Post reported. | Both properties are suffering in the economic shutdown. In response to Miami-Dade County’s rules, the Doral resort has ceased all operations, while the Washington hotel continues to operate, albeit with few guests and with its restaurant and bar closed. The Trump Organization rents the Washington property from the federal government, and the company had been soliciting bids from potential buyers for the lease, a process that is now on hold, The Washington Post reported. |
| Mr. Trump received the loans for those properties, as well as another related to his Chicago skyscraper, from 2012 to 2015. Because of his history of defaults and bankruptcies, Deutsche Bank insisted that Mr. Trump provide personal guarantees on those loans, meaning that the bank has recourse to his personal assets if he were to stop paying back the money. | Mr. Trump received the loans for those properties, as well as another related to his Chicago skyscraper, from 2012 to 2015. Because of his history of defaults and bankruptcies, Deutsche Bank insisted that Mr. Trump provide personal guarantees on those loans, meaning that the bank has recourse to his personal assets if he were to stop paying back the money. |
| Ever since Mr. Trump’s election, Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials. Seizing the president’s personal assets would be an unattractive proposition. But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank. | Ever since Mr. Trump’s election, Deutsche Bank executives have been fretting about what would happen if he were to default, according to bank officials. Seizing the president’s personal assets would be an unattractive proposition. But opting not to collect on the loans would be the equivalent of an enormous financial gift to Mr. Trump, whose administration wields enormous power over the bank. Deutsche Bank’s operations in the United States are supervised by federal regulators, and the Justice Department has been conducting a criminal investigation of the bank. |
| The Trump International Golf Club in West Palm Beach, Fla., is on nearly 300 acres that the Trump Organization leases from Palm Beach County. Mr. Trump often frequents the golf course when he stays at his nearby Mar-a-Lago resort. | The Trump International Golf Club in West Palm Beach, Fla., is on nearly 300 acres that the Trump Organization leases from Palm Beach County. Mr. Trump often frequents the golf course when he stays at his nearby Mar-a-Lago resort. |
| Updated June 16, 2020 | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Gov. Ron DeSantis of Florida last month ordered restaurants, bars and golf courses, among other businesses, to be closed as the coronavirus descended on the state. | Gov. Ron DeSantis of Florida last month ordered restaurants, bars and golf courses, among other businesses, to be closed as the coronavirus descended on the state. |
| The Trump Organization reached out on multiple occasions last week to Palm Beach County to ask whether it expected the company to continue making the monthly payments of tens of thousands of dollars due under its long-term lease, according to people briefed on the discussions. | The Trump Organization reached out on multiple occasions last week to Palm Beach County to ask whether it expected the company to continue making the monthly payments of tens of thousands of dollars due under its long-term lease, according to people briefed on the discussions. |
| Mr. Raymundo, the Trump Organization executive, told county officials that the governor’s orders closing bars and restaurants had forced the golf club to cancel events and close some of its facilities. Mr. Raymundo didn’t respond to requests for comment. | Mr. Raymundo, the Trump Organization executive, told county officials that the governor’s orders closing bars and restaurants had forced the golf club to cancel events and close some of its facilities. Mr. Raymundo didn’t respond to requests for comment. |
| He didn’t explicitly ask to delay or skip lease payments, but Palm Beach County officials interpreted his inquiries as an informal request. | He didn’t explicitly ask to delay or skip lease payments, but Palm Beach County officials interpreted his inquiries as an informal request. |
| The Trump Organization’s lease agreement with Palm Beach County, which dates from 1996, contains what is known as a “force majeure,” or “act of God,” provision. County officials are looking into whether the provision may allow the organization to delay lease payments because of the pandemic. | The Trump Organization’s lease agreement with Palm Beach County, which dates from 1996, contains what is known as a “force majeure,” or “act of God,” provision. County officials are looking into whether the provision may allow the organization to delay lease payments because of the pandemic. |
| While businesses nationwide are seeking similar relief, Mr. Trump’s status as president means his company’s actions are freighted with potential conflicts of interest for lenders and landlords. At Deutsche Bank, for example, some executives have said they were worried about the possibility of retaliation by the Trump administration if they were ever to come into conflict with the president. | While businesses nationwide are seeking similar relief, Mr. Trump’s status as president means his company’s actions are freighted with potential conflicts of interest for lenders and landlords. At Deutsche Bank, for example, some executives have said they were worried about the possibility of retaliation by the Trump administration if they were ever to come into conflict with the president. |
| Mr. Trump has at times in the past tried to take advantage of crises to get out of his debts. | Mr. Trump has at times in the past tried to take advantage of crises to get out of his debts. |
| In November 2008, he owed hundreds of millions of dollars on a loan from Deutsche Bank that financed the construction of the Trump International Hotel & Tower in downtown Chicago. Mr. Trump told Deutsche Bank that he considered the financial crisis to be a contract-voiding “act of God.” He sued the bank, blaming it for the crisis and for engaging in predatory lending by trying to collect on the loan, and sought $3 billion in damages. | In November 2008, he owed hundreds of millions of dollars on a loan from Deutsche Bank that financed the construction of the Trump International Hotel & Tower in downtown Chicago. Mr. Trump told Deutsche Bank that he considered the financial crisis to be a contract-voiding “act of God.” He sued the bank, blaming it for the crisis and for engaging in predatory lending by trying to collect on the loan, and sought $3 billion in damages. |
| Lawyers for Deutsche Bank pointed out in court filings that at the same time that Mr. Trump was claiming that the financial crisis left him unable to keep up with loan payments, he had been boasting to the media about how his business was swimming in cash. The litigation was settled two years later, with Mr. Trump getting extra time to repay what he owed. | Lawyers for Deutsche Bank pointed out in court filings that at the same time that Mr. Trump was claiming that the financial crisis left him unable to keep up with loan payments, he had been boasting to the media about how his business was swimming in cash. The litigation was settled two years later, with Mr. Trump getting extra time to repay what he owed. |
| Sheelagh McNeill contributed research. | Sheelagh McNeill contributed research. |