Trump Organization faces potential business risk over indictments

The company's debt is one of the greatest risks. Trump Organizations debts are, reportedly, enormous. According to Forbes, Trump owes at least $1Billion to his creditors according to an October 2020 report. Trump spokesperson did not respond immediately to a request for comment.Large loans may include clauses that the lender can demand immediate repayment if the borrower gets indicted. Experts said that while the terms of Trump Organization's loans are not public, it is safe to assume that they include such stipulations. David Enrich, a New York Times reporter, wrote a book about Deutsche Bank and tweeted that these clauses were not in the company's contracts.Some loans are granted under good-guy terms, so if you have any problems, the loan can be called. Charles Clayman is a New York-based white-collar criminal defense lawyer.However, the indictment does not mean that the Trump Organization is doomed. Rebecca Roiphe (an ex-NYPD prosecutor) told POLITICO that she believes the company will prevail.Roiphe, a professor at the New York Law School, stated that he was on the side of "I doubt this is the end of the Trump Organization".Roiphe points out that lenders want their money back. It could prove counterproductive to aiding the destruction of their borrowers.According to Barbara McQuade, a former U.S. Attorney, the indictment could make it more difficult for the company to obtain loans in the future.She told POLITICO that even if they were acquitted they will still have to spend lots of money and time on their defense. They could face significant fines if convicted, which could affect their ability to repay loans.Trump's close allies have been praising the health of Trump's businesses. Save America PAC was the former presidents leadership PAC. It highlighted a New York Post article titled Sales at Trump properties skyrocket after Trump's presidency.The indictment could pose challenges that are not related to debt. Banks may be forced to stop doing business with Trump Organization.Usually, we get a letter saying that your account is being closed. Transfer your account to another place. Clayman stated that you have to wait for X amount of time. Clayman said that if they don't get it, they are frozen until they move.The Trump Organization and its chief finance officer, Allen Weisselberg are denialists for now. On Thursday, former President Donald Trump made two brief statements decrying Vances' indictment as a political witch-hunt.Vance and Letitia, the New York state attorneys general, signaled however that they are still investigating.If the Trump Organization is convicted or pleads guilty, there will be more minefields. Trump properties may lose their liquor licenses. John Cocklin, a former chief investigator at the New Jersey Division for Alcoholic Beverage Control, explained to POLITICO how many states automatically revoke liquor licences belonging to individuals or companies convicted in crimes of moral turpitude. Tax evasion is included in this category in most states.Cocklin stated that even though the Trump Organization is not listed on a liquor license itself, regulators will likely still revoke licenses for its subsidiaries. Trump properties could need to be spun off or sold to another entity, if they want to prevent such a revocation.Cocklin explained that this is why they pay a lot to many powerful attorneys.