A West German bank and a French bank hold the key to Donald Trump's hopes of raising a $65 million loan in the next two days and avoiding a default on a casino bond issue, a banking source said.
The developer has been meeting with a syndicate of banks in recent weeks in an effort to work out a complex restructuring and avert what could be a string of defaults in Trump's real estate and casino empire.
Under a proposed plan, the banks would extend Trump money to make overdue payments on the bond issue and suspend some payments on his $2 billion in bank loans in exchange for equity in some of his properties.
A $20 million bridge loan is being prepared to tide Trump over until the larger loan is approved, the New York Times reported today.
Trump's main banks -- Citibank, Chase Manhattan, Bankers Trust and Manufacturers Hanover -- have agreed to the restructuring.
But Dresdner Bank AG and Societe Generale, which own parts of some Trump loans arranged by Chase, are balking at terms of the deal, a banker with knowledge of the talks said Sunday.