Michael Cohen is skewered on the horns of a dilemma and he’s damned if he does and damned if he doesn’t. First of all, he just lost his lawyers over a fee dispute, according to ABC News, which is problematic to say the least since he’s involved in a costly and high profile legal battle after the FBI raid and secondly he’s trying to keep his fleet of taxicabs on the road when revenues have fallen 80% due to competition from Uber and Lyft. Things are not going well to say the very least, and he’s had to borrow from Peter to pay Paul. First, his lawyers jumped ship and not at the most propitious time, since he may be facing arrest or indictment soon.
I wonder how much Mr. Ryan and his colleagues at McDermott Will & Emery soaked Mr. Cohen for before they jumped ship. I estimate $350k-$500k a week (not a typo). I guess that wasn’t enough to buy loyalty to their client when the going got tough. #Basta
— Michael Avenatti (@MichaelAvenatti) June 13, 2018
For those keeping track, approximately 57 days ago, I predicted that Mr. Cohen would be arrested and indicted within 90 days… I also stated it would pose a serious problem for Mr. Trump. #ClockTicking #Basta
— Michael Avenatti (@MichaelAvenatti) June 12, 2018
That’s true enough. It’s also true that Cohen’s taxi cab companies are now in a “troubled debt restructuring” plan, and that Cohen had to put up his home as collateral. Bloomberg:
Cohen is one of three taxi clients of Sterling National, and the other two were already in a debt restructuring process at the end of 2017 or were not making payments, filings for that period show.
During the first quarter of this year, the bank moved its third client, with $12.8 million of debt, into a category it calls a “troubled debt restructuring” — defined by federal bank regulators as a concession a creditor grants to a debtor facing financial difficulties — according to a bank filing on May 4. The timing matches the issuance of new liens issued by Sterling against Cohen’s assets. […]
Cohen and his wife have now pledged their apartment in the Trump Park Avenue — a 10th-floor spread combining three units — as additional collateral to the bank, which valued it at $9 million, according to filings of the April 22 transaction.
“It looks to me like the lender probably said you have to guarantee these existing loans, and by the way you have to pledge your real estate to backstop your guaranty,” said Joshua Stein, a Manhattan real-estate attorney who reviewed the public filings.
Cohen has temporarily fixed his cash flow problems but that doesn’t address his legal problem. Here’s a meme that was first posted on Bill Maher’s show.
— Donna (@DonnaR4242) June 13, 2018