By April MacIntyre Dec 1, 2008, 21:48 GMT
The Donald is facing an ongoing legal battle with Deutsche Bank Trust Co. Americas.
Ach du lieber: Legal woes for real-estate developer Donald Trump - © Peter Langone / PR Photos
The bankers claim the real-estate developer personally owes them $40 million after defaulting on a $640 million construction loan for Trump International Hotel & Tower in Chicago.
Reuters reports from Crain's Chicago Business, which first broke the news, that Deutsche filed suit against Trump in New York State Supreme Court in Manhattan.
It is the second suit filed within a month over the development at 401 N. Wabash Ave.
Trump's attorneys said an agreement that provides continued construction financing for the project has been under negotiation for weeks and could be completed this week, according to Reuters.
Trump previously filed suit against Deutsche Bank in New York State Supreme Court in Queens, seeking to extend his repayment of $330 million due Nov. 7 for the construction loan for an unknown period of time because the global economic crisis was a "once-in-a-lifetime credit tsunami."
Trump sought $3 billion in damages.
Deutsche has moved to have that case dismissed.
This latest suit volley calls for Trump to make good on the personal guarantee he signed in February 2005 for the building if he didn't make the loan payments on time.
The suit states Trump did not pay the more than $330 million due Nov. 7, a date that already had been extended, and that on Nov. 10, Deutsche made written demands for the outstanding loan payment and the $40 million guarantee.
Allegedly, Trump claims more than 50 percent, but less than 60 percent, of the units had been sold and there remains $325 million of units under contract.
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