Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judge Allows Trump Taj Mahal To Void Union Contract
Author: Joel R. Glucksman
Date: October 28, 2014
Key Contacts
Back
The Trump Taj Mahal may be able to keep its doors open after all. In a surprising move, Judge Kevin Gross granted Trump Entertainment Resorts’ request to terminate its contract with Local 54 of the Unite-HERE union, giving Trump a chance to avoid closing its struggling Atlantic City casino, according to The Associated Press. The contract in question pertained to the casino’s pension and health care obligations. Both Trump Entertainment Resorts and billionaire investor Carl Icahn have said that the casino would not be able to survive if it were forced to continue paying these benefits to its employees.
According to the Daily Bankruptcy Review, Icahn plans to move ahead with his plan to take over the struggling casino even if the more than 1,100 workers represented by the union go on strike, his attorney, Allan Brilliant, told the judge in court.
“The decision today will certainly enrage the workers who have relied on and fought for their health care for three decades,” Bob McDevitt, president of Local 54, told The Associated Press. “We intend to continue to fight this both in the courts and in the streets. Tropicana’s major owner [Icahn] wants you to believe that the demand to take away workers’ health insurance is necessary because of the financial situation at the Taj Mahal and in Atlantic City. We believe it has nothing to do with either. He has a long history of eliminating, reducing or freezing worker benefits which sometimes saddles government agencies with the burden of cleaning up the mess.”
Icahn owns Taj Mahal debt of $286 million, which he has agreed to swap for ownership of the casino and invest a further $100 million in making it a success, the news source explained. This investment is contingent, however, upon massive government aid from Atlantic City and New Jersey. It seeks $175 million in relief through a payment in lieu of taxes, or PILOT program, an Economic Redevelopment Grant and an Urban Revitalization Grant.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, 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 Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
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
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.