
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: December 2, 2014
Partner
201-896-7095 jglucksman@sh-law.comA 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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!