Mystery $50 Million Loan

[struggle4progress]

RUSS CHOMA
FEB. 23, 2017 6:00 AM

... According to Trump's financial disclosure records and various news reports, Trump is carrying hundreds of millions of dollars in debt. These transactions could provide his creditors with leverage over the new commander-in-chief. Moreover, it would be difficult for Trump to refinance or modify the terms of his various loans without raising suspicion that he is receiving favorable treatment because of his position. (Imagine a bank gives him a good rate. Would this suggest it might receive preferential treatment from the US government Trump heads?) Because Trump has refused to release his tax returns, it's impossible for the public to know exactly how much he owes and to whom. And Trump never kept his campaign promise to reveal all his creditors and obligations.

The financial disclosure form he filed last year did note more than a dozen loans totaling at least $713 million. But the full amount could be more. And buried in the paperwork is a puzzling debt that ethics experts say could suggest that Trump has a major creditor he has not publicly identified.

According to the disclosure, in 2012, Trump borrowed more than $50 million from a company called Chicago Unit Acquisition LLC. (The true value of the loan could be much higher; the form requires Trump only to state the range of the loan's value, and he selected the top range, "over $50,000,000.&quot Elsewhere in the same document, Trump notes that he owns this LLC. That is, he made the loan to himself. There's nothing necessarily unusual about that.

Here's where the situation gets odd. With Trump owning the Chicago Unit Acquisition LLC—and the LLC being owed $50 million or more by Trump—this company should be listed on Trump's disclosure as worth at least that much, unless it has debt offsetting this amount. Yet on Trump's latest disclosure form, Chicago Unit Acquisition is not listed at all. The disclosure rules say that any asset worth more than $1,000 must be noted. So this is the mystery: Why is this Trump-owned firm that holds a $50 million-plus note from Trump not worth anything? ...

http://www.motherjones.com/politics/2017/02/does-trump-have-mystery-creditor

[Cicada]

1. I bet local borrowed x dollars and lent it to Don

Then the local would be worth zero. Plus 50 due from Don, minus 50 due to lender, net zero.
And I bet Don guaranteed the lender to LLC that he would make good on loan to LLC if it failed to. I bet this is useful for tax reasons. Sounds legit to me.

[BSdetect]

2. Sounds horrible to me.

Typical capitalist crap.

Tax payers end up footing the bill when they decalre bankrupcy and form a new company to repeat the scam.

[Cicada]

6. The lender will not lose if LLC goes broke

Lenders who loan to LLCs understand they can choose to go broke. So they require the owners of the LLC to post collateral or personally guarantee the loan. There are weird tax rules for debts of LLCs which require odd loan structures. It is not corrupt. It is just the result of odd but logical technical tax rules.

[Angry Dragon]

4. I think the LLC would be worth at least 50 million dollars because the loan would be an asset

on their books................ grifter

[Cicada]

5. And the offsetting debt would be a liability

Plus fifty is the value of what Don owes the LLC. Minus fifty is the value of what the LLC owes the bank. Net is zero.

[Angry Dragon]

7. He borrowed from the LLC ....... where is the bank loan come from??

[Cicada]

9. Probably Deutsch Bank, one of few who will lend to him.

In reality Trump borrows from the bank. But it may be that for tax reasons the nominal borrower should be the LLC. So LLC borrows the money (based on the personal guarantee of Trump to pay if the LLC does not pay). The LLC then lends to Donald. This is just an arrangement which may have tax advantages and is perfectly legal.

[Angry Dragon]

3. Trump is hiding something

[Kimchijeon]

8. Right, something is fishy here

Would be nice to get it exposed.

[Wounded Bear]

10. And how much of that paper is Russian backed...

or linked?

Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.
Tax returns.