Monday, July 21, 2014

So Donald Sterling May Need A Sale To Cover A Huge Debt

((HT: MyFoxLA))

Darren Schield, the Chief Financial Officer of the Sterling Trust, took the stand in the court proceedings today in Los Angeles and admitted in open court that the Trust needs to sell the Clippers to cover half a billion dollars in outstanding loans for other Sterling properties.

Once Donald Sterling dissolved the Trust, the banks that are holding the notes could jump in and declare the Sterlings in default of the notes.

If the Clippers aren't sold, Schield admitted that Donald Sterling would have to dump that same amount of value in apartment buildings or other Sterling properties- a move that could flush the real estate market into the toilet.

Here's the coverage from the trial today that isn't all that optimistic

Ramona Shelburne said after the trial appearances today, Donald Sterling met with possible-new owner Steve Ballmer and his estranged wife, Shelly.

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