European Stars and Stripes (Newspaper) - June 20, 1990, Darmstadt, Hesse                                Will Cash crunch Tumble Trump after a decade of big buying Mega Developer Donald Trumps swagger is being braked he a taking in less than he needs to finance debts. By Rick Hampson associated press Donald Trump begins his Best Selling guide to entrepreneurial Success the Art of the Deal by declaring Quot i done to do it for the Money. In be got enough much More than i la Ever  the same Man lately has been telling a Parade of Bankers to his Trump Tower office in Midtown Manhattan that Money a about $100 million a was precisely what he needed. After a decade of buying hotels casinos aircraft and land a decade in which he came to personify the Rich braggart and shameless self promoter Trump has been slowed Down by simple math. He a taking in less than he needs to finance his debts a $770,000 a week less according to Forbes Magazine. Bankers seem willing to help Trump but a Given a drop in the value of the 44-year-old developers Manhattan real estate and in the tenuous Revenue projections from his Atlantic City casinos a not entirely on his terms. Trump had to put up new collateral and Quot he a trying to sell the yacht the plane and the helicopters a said a source familiar with Trumps affairs who spoke on the condition of anonymity. A you know the smaller  his situation worsened by the end of last week when he missed a payment on Bonds used to finance one Casino and reportedly faced growing reluctance by some key lenders Over granting him at least $60 million in additional credit. Whatever its Resolution Trumps Cash crunch threatens his prize ability to control his Empire do his deals indulge in his extravagances. Above All it has weakened his most impressive edifice a his legend which lured tourists to his hotels gamblers to his casinos celebrities to his Manhattan apartment towers. It might even have led Bankers to give too much credit for his own Good. A people tend to be mesmerized by his personality and his attitude and his record Quot says Benjamin Schore real estate professor at Columbia University a business school. A sure Bankers Are affected by it. They re  the Story of Donald j. Trump has been told Many times often by Donald j. Trump How he dreamed of expanding his fathers real estate business How he obtained tax Breaks and built the grand Hyatt hotel when no one else was building anything in Manhattan How he snapped up the site for Trump Tower How he wore Burgundy suits. Whatever his taste Young Trump was by most accounts a single minded hard working Developer. Unlike some older and More successful competitors when visiting construction Sites he Wasny to afraid to get his Patent leather shoes a which matched his suits a dirty. Trump also developed a reputation for hiring the Best people and paying them accordingly and for financing his projects by taking on partners. He put his name on everything he built or bought. A the name Sells Quot Trump once said. Quot its All a game  in the mid-1980s, bargains became More scarce and Trump increasingly paid top prices to buy and fix whatever he wanted including the Plaza hotel the Eastern airlines shuttle service and the then unfinished Taj mahal Casino. Trump operated on two assumptions that the new York real estate he owned got More valuable by the Day and that any other acquisitions would soar in value if adorned with his name. Banks happily helped. When Trump bought what became the Trumps Castle Casino from Hilton hotels a group of Banks Lent him the Down payment and gave him a five year Grace period for the first repayment. A Bankers have All this Money coming in. They be got to get it out in Loans and they be got to get it Back Quot said Schore explaining Why Banks such As Citibank and Chase Manhattan loaned to Trump so eagerly. What Trump Calls Quot the beat up Trump months Quot began in february because of a dispute with his wife not his Bankers. Donald and Ivana Trump were breaking up. Mrs. Trumps determination to seek a Large share of her husband s assets focused attention on their real Worth. Trump kept a straight face even when he scrapped free Coffee on the Trump shuttle and announced the shuttle was for Sale a year after he bought it. A Cash is King a he announced explaining that he wanted to be Able to grab bargains As prices dropped. Then Forbes Magazine reported Trumps Worth which it had estimated at $1.7 billion in 1989, had sagged to about $500 million. Publicly Trump was ridiculing the article privately he was calling Bankers for More Cash. His problem became clearer two weeks ago when banking sources confirmed he was conferring with lenders who wanted More collateral. New York tabloids covered that Story like they did Trump s marital mess. The newly opened Taj mahal which Trump had touted As a the eighth wonder of the world Quot was called the Quot eighth Blunder of the  Trumps denunciations of others for his problems betrayed the Strain he faced. When a brokerage analyst questioned Trump s Taj Revenue projections he threatened to sue the brokerage. The analyst was fired. When reporters asked about disappointing shuttle and Casino revenues he blamed employees including two respected Casino executives who had died in a helicopter crash. Trumps reputation for commanding staff loyalty also suffered with the resignation of Jack of Donnell president of the Trump Plaza Casino who said he was sick of Trumps interference. For example of Donnell said one weekend in May Trump stalked a Baccarat pit watching a japanese Gambler who had won More than $6 million in february. The Gambler eventually lost $10 million arid Trump Cut him off before he had a Chance to recover. The guest stormed off to another Casino. In a business where you re never supposed to Quot sweat the action Quot Trumps behaviour reflected inexperience o Donnell said. Trumps attitude toward wealthy japanese emerged As another liability that some said could haunt him. In his heyday Trump would blast the japanese As economic exploiters the next minute head say their desire for Manhattan real estate made his own properties extremely valuable. But now weary of Japan bashing by Trump and others japanese investors Are increasingly reluctant to buy Well known american properties. This has narrowed the Field of affluent buyers whom Trump might need some Day. Trump is by no Means finished a especially if the Taj mahal meets his expectations. Nor is he the Only Developer under pressure in the economically depressed Northeast. Quot Trump is going to be in exceptionally Good company Quot predicts Michael Cohen a real estate expert. Quot most of the developers and Bankers in new York were too confident Quot says Schore. Quot they Felt that even if they did make a mistake they d be bailed out by the rising Market. They forgot about  will Trump survive Quot if i had to bet id bet on him Quot says Schore. Quot he a a very skilled Developer and hopefully this will teach him to avoid too much  but As he tries to extricate himself by Selling stalling or renegotiating Trump must face a reality he described in the Art of the Deal Quot the worst thing you can possibly do in a Deal is seem desperate to make it. That makes the other Guy smell blood and then you re  wednesday june 20, 1990 the stars and stripes a a a Page 13