Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judge Delays Taj Mahal Bankruptcy Filing
Author: Joel R. Glucksman
Date: December 2, 2014
Key Contacts
Back
A federal bankruptcy judge has just added to the uncertainty surrounding the Trump Taj Mahal, an Atlantic City casino whose owner filed for protection under Chapter 11 of the bankruptcy law.
Trump Entertainment Resorts Inc., the current owner of the Trump Taj Mahal, recently filed a revised bankruptcy plan ahead of a Nov. 5 court hearing, according to The Inquirer. This plan provides that billionaire investor Carl Icahn, who has been pursuing a debt leveraged buyout of the casino, might recover between 38 percent and 65 percent of his $292 million claim. This is based on the estimated values of the company’s two properties, the Trump Taj Mahal and the closed Trump Plaza. If the Taj Mahal remains open, Icahn could get $190 million, if it closes, only $110 million.
The accompanying disclosure statement filed with the revised plan notes that Icahn has agreed to contribute $15 million to pay for bankruptcy costs if the casino is closed, according to the news source. The company and Icahn have indicated that the casino will close – resulting in 2,800 layoffs – if state and local governments don’t provide $175 million in aid over the next five years. This includes an immediate $55 million.
Judge Gross has, however, decided to delay his decision on the revised plan, opting instead to tell the company to return in one week with a more solid plan of restructuring, according to Dow Jones Bankruptcy News.
“My concern is that there is simply too much immediate uncertainty,” Gross said during the Wednesday hearing, according to the news source. “There needs to be something in place that provides comfort that there is really a path to a plan.”
The Atlantic City casino sector has been struggling in recent years. The Inquirer noted that the low end of Icahn’s potential recovery – $110 million – is approximately equal to what Brookfield Asset Management recently paid to acquire the relatively new, but already struggling, Revel Casino Hotel. The latter hotel cost $2.4 billion to construct.
- 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
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
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.