Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Icahn: Trump Taj Mahal "Will Almost Certainly Close"
Author: Joel R. Glucksman
Date: November 13, 2014
Key Contacts
Back
B64 at English Wikipedia [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0) or GFDL , via Wikimedia Commons from Wikimedia CommonsBillionaire investor Carl Icahn, the so-called ‘father’ of the leveraged buyout, appears to be weary of his investment in the Trump Taj Mahal.
The potential buyer for the Taj Mahal told The Associated Press that the casino “will almost certainly close.” He explained that he will still go through with the deal to swap his almost $300 million of debt for ownership of the casino – contingent on investing a further $100 million – but wishes that he hadn’t picked up the phone when the Taj Mahal’s current owner had called.
“One overriding fact is perfectly clear: The Taj is quickly running out of money and will almost certainly close,” Icahn told the AP. “Reprehensibly, the union, instead of working with, and trying to help, the company to keep the Taj alive, is instead doing everything to destroy the possibility of saving the jobs of over 3,000 employees.”
A U.S. bankruptcy judge ruled recently that the casino may jettison its traditional defined benefit pension plan and company-sponsored health insurance, according to The Inquirer. Trump Entertainment, the company that owns the Taj Mahal, told Judge Kevin Gross that it needed to save $14.6 million annually from its contract with the union that represents most of its workers UNITE HERE Local 54.
In response, about 500 union members came out to protest on Oct. 24, demanding that their health care be restored, NBC reported. The demonstrators allowed traffic through to the casino, and Trump Entertainment CEO Robert Griffin said that they were having no effect on business inside the Taj Mahal.
The casino’s plan for restructuring also includes an aid package of $175 million from the state, the news source explained. This request is extremely unpopular among state legislature and has already been rejected by state Senate President Steve Sweeney.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.