PHILADELPHIA - Donald Trump has agreed to put himself on a monthly budget certain to cramp his style to get the $65 million bank loan he needs to see his way through a cash crunch, The Philadelphia Inquirer said today.
Under the tentative deal, the syndicate of banks would lend Trump $65 million on the condition they be allowed to name two executives to run the Trump empire, the newspaper said.
The deal would prohibit Trump from moving money among his companies without permission and put him on a personal budget of $450,000 a month, less in subsequent years, according to reports in The New York Times and the Inquirer.
The Inquirer said Trump had agreed to those conditions.
On June 15, Trump missed a $43 million payment on bonds issued to finance the Trump Castle casino in Atlantic City, N.J. Under a grace period, he has until midnight tomorrow before he can be declared in default.
A default on the Castle bonds could trigger defaults on bank loans secured by other properties, which could then be seized, and it could affect his gaming license in New Jersey.
A banker who spoke on condition of anonymity told The Associated Press yesterday that a West German bank and a French bank hold the key to Trump's hopes of raising the $65 million in the next two days.
Trump's main banks - Citibank, Chase Manhattan, Bankers Trust and Manufacturers Hanover - have agreed to the restructuring. But Dresdner Bank AG and Societe Generale are balking at terms of the deal, said the banker.
``If they don't agree, there won't be any deal,'' said the source. ``If there's no deal, then either he comes up with the cash from some other source . . . or he defaults and perhaps declares bankruptcy on the casino and related properties.''
A $20 million bridge loan is being prepared to tide Trump over while the paperwork for the larger loan is completed, the Times reported today.
The newspaper, quoting unidentified bankers involved in the negotiations, said before the 30-day financing can be extended, an agreement on the bigger loan must be obtained.
Terms of the broad loan agreement include stringent restrictions on Trump's personal and business finances, the newspapers reported.
An allowance is certain to put a damper on the lifestyle Trump enjoyed during the 1980s. His playthings include a 284-foot yacht, a 118-room Florida mansion, and a helicopter and jet for his personal use.
The restrictions limit Trump's monthly charitable contributions to $100,000 and stipulate that his household and personal expenses not exceed $450,000 a month for the rest of this year, $375,000 a month in 1991 and $300,000 a month in 1992.
Trump has been negotiating with the banks in recent weeks to restructure his debts.