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
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
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.