(Reuters) - Real estate developer Donald Trump and his lenders agreed to temporarily suspend litigation on the Trump International Hotel & Tower project in Chicago, the Wall Street Journal said.
The agreement with the project's lenders, a group led by Deutsche Bank AG
The agreement also gives Trump breathing room to finish construction without imminent fear of foreclosure, it said.
Sales of 339 hotel rooms and 486 condominium units have come in below original estimates and the project's current projected revenue remains short by nearly $100 million needed to pay off the senior first mortgage loan, the paper said, citing court documents and people familiar with the project.
"I see this as a very positive development," the Journal quoted Trump saying in a statement. A Deutsche Bank spokesman confirmed the agreement to the paper.
In litigation started last November, Trump demanded that Deutsche Bank extend the construction loan, claiming the overall economic financial crisis triggered a "force majeure" clause, the paper said.
Deutsche Bank countersued, demanding Trump make good on a $40 million personal guarantee he made to complete the building, it said.
A spokesman for Trump could not be immediately reached by Reuters for comment.
(Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by David Cowell)
