One thing I am pretty sure he's doing is writing off the value of his properties for tax purposes (which looks bad on tax documents) when in fact their value is not diminishing. He'll be consolidating losses in the group accounts that don't appear in the local ones.
Whereas for lenders, the losses on local properties won't appear and so they will appear to be profitable (and consequently valuable) to local lenders.
So he is inflating the value of the assets and the net income they generate to lenders and deflating them by making them seem as lossy as possible to the IRS.
That's either a tax scam or a fraud on lenders, and probably both.
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