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
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
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.