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Foundering in a sea of debt, Donald Trump might have little choice but to jettison the Manhattan properties he holds dearest to stay afloat.
If Mr. Trump is forced to sell, real estate experts say first to go will be the Plaza Hotel, which Mr. Trump once called "the Mona Lisa," and his share in the Grand Hyatt New York, the project that vaulted him to prominence in the early 1980s. His 76-acre tract on the West Side, where he had dreamed of developing Trump City, is another likely candidate, although he'll be lucky to get what he owes on it.
Mr. Trump can be expected to keep his other cherished Manhattan property, the world-famous Trump Tower. But real estate sources say it will soon be refinanced in a deal that could reduce Mr. Trump's ownership.
And ironically, the properties Mr. Trump is most likely to keep are those he is less attached to, such as a 27% stake in Alexander's Inc. and the Trump Shuttle. He's unlikely to sell those because there's little demand and he owes more on them than they're worth.
Of course, there is still a chance that Mr. Trump can pull through his financial difficulties without having to shed properties. A major rebound in Atlantic City or at the Trump Shuttle would significantly boost his cash flow. Or his bankers may agree to lend him more money so that he isn't forced to sell properties at distressed prices.
"In many cases a lender will advance additional funds to get through difficult periods," says Leonard Boxer, a workout specialist for Stroock & Stroock & Lavan.
But with $2.3 billion in debt -- much of it unsecured -- and the sharks beginning to circle, Mr. Trump may quickly find that he has little choice except to shed assets and undergo a long workout period. It's all up to his bankers, who started meeting with him about three weeks ago in an effort to restructure his debt. The only official comment on...