Former President Donald Trump is facing a deadline to secure a half-billion-dollar bond to appeal his civil fraud case in New York, causing panic within his camp. Trump's lawyers have acknowledged the challenge of finding an insurance company to underwrite his $454 million bond, with his preferred option, Chubb, declining to provide coverage. As the deadline of March 25 approaches, Trump's team is exploring options such as seeking support from wealthy backers and considering asset sales.
Trump has expressed concerns about the potential financial crisis and negative optics associated with the deadline. He has criticized New York Attorney General Letitia James and Judge Arthur Engoron over the matter, both privately and publicly on social media. Trump has raised objections to the requirement of posting the bond and has voiced worries about having to sell assets at reduced prices.
Trump's campaign spokesman has dismissed the allegations as baseless and criticized the judgment as unjust and unconstitutional. Trump is awaiting a decision from the appeals court on whether the judgment will be paused during the appeal process or if a smaller bond of $100 million will be accepted.
The bond obligation stems from a ruling by Judge Engoron, ordering Trump to pay $355 million in disgorgement for fraud and conspiracy in a case brought by James. The total amount owed by Trump, including interest, exceeds $450 million. To prevent enforcement of the judgment, Trump must post a bond that will be held in an account until the appeal is resolved, which could take years.
Despite posting a $91.6 million bond in a previous case, Trump is facing challenges in securing a larger bond due to underwriters' internal policies limiting coverage above $100 million. Trump and his legal team are exploring various avenues to meet the bond requirement, with bankruptcy being the least likely option at present.
