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Will Trump Be Able to Cash in on New Merger in Time to Pay Lawsuit?

Donald Trump is about to earn $3 billion off a merger deal. That would come in useful for covering the cost of the $464 million lawsuit bond.

Trump in Focus

However, the merger will not start to pay out for the former President right away. Shareholders will be voting on Friday if the merger should be allowed, as Trump Media is looking to join forces with a blank-check company.

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The merger would allow Trump to own a large stake in the company, and the shares are valued at more than $3 billion. That stake cannot be cashed in immediately.

The deadline for the lawsuit bond to be paid is Monday for the civil fraud cause. If he does not pay that bond on time, then Trump’s golf course and his private estate could both be seized, as well as a number of other assets until the value of the bond is covered.

If the merger is approved, Trump will own a 58% share in the company, with about 79 million shares to go to him. If the company hits specific goals, then Trump could earn millions more.

Even if the merger closes very fast, it will not be soon enough for Trump to cover the bond. The merger could be approved as soon as Friday, and then the companies would have to close the merger within two business days of the approval, which would put that date on Tuesday, at the earliest.

Trump’s Legal Troubles

Donald Trump’s businesses have had to file for bankruptcy four times- all of these have been casino and resort companies. He has been no stranger to tight financial situations, despite pulling in millions in payouts from struggling companies that he owns.

The current lawsuit that requires Trump to pay $464 million is over false claims that Trump and his business associates made about Trump’s personal wealth. The court found that Donld Trump engaged in a scheme over the course of a year to defraud banks by presenting false statements of holdings and wealth.

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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