Trumpfaces assets ‘fire sale’ as cash for appeal dries up

Donald Trump is facing the prospect of a “fire sale” of his assets after failing to obtain a bond to allow him to appeal against a New York civil court judgment amounting to US$454 million (NZ$747m).

Lawyers for the former president made a further plea yesterday against having to put up any cash in order to appeal, saying that raising the bond had proved to be a “practical impossibility”.

Trump, 77, has until Monday to appeal against last month’s judgment that for years he and his company falsified valuations to gain favourable terms from lenders and insurers. The US$355m judgment has already risen by about US$100m in interest.

Companies that provide bonds typically require collateral of 120%, amounting to US$557m, his lawyers said. Trump has been unable to convince any underwriter to accept his properties as surety.

His re-election campaign fundraising is also being used to pay legal fees as Trump insists his four criminal trials are part of a political witch-hunt to block his return to the White House.

Alan Garten, general counsel of the Trump Organisation, wrote in a court filing that Trump was “financially stable” but the fact that no provider has been willing to accept property as collateral “presents a major obstacle”.

Alina Habba and Clifford Robert, Trump's defence lawyers, wrote: “Obtaining such cash through a ‘fire sale’ of real estate holdings would inevitably result in massive, irrecoverable losses – textbook irreparable injury.”

New York attorney general Letitia James has insisted on the full bond amount for the appeal by warning that Trump could seek to avoid payment if he loses.

Yesterday Trump issued a further cash appeal to supporters in an email entitled “Bloodbath!”

This came after an outcry over his warning in Ohio on Sunday that there would be “a bloodbath for the country” if he were not re-elected, while talking about his plan to place tariffs on imported cars.