
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: December 11, 2014

Partner
201-896-7095 jglucksman@sh-law.comU.S. Bankruptcy Judge Kevin Gross has questioned the reasoning for permitting Trump Entertainment to remain in Chapter 11.
When Trump Entertainment filed for protection under Chapter 11 of the bankruptcy law, it intended to restructure and go on being profitable. Now that it seems this is less likely, Gross has ordered the company to demonstrate why its Chapter 11 reorganization bankruptcy shouldn’t be converted to a Chapter 7 liquidation, according to The Wall Street Journal. This would ruin the plans of billionaire Carl Icahn, who has wanted to take the company over via a debt for equity swap. In apparently questioning Icahn’s strategy, Judge Gross cited the lack of adequate financing for Trump’s successful emergence from Chapter 11.
Under Chapter 7 of the bankruptcy law, the court appoints a trustee to make decisions for the company and sell its assets. The proceeds are then distributed to creditors. By contrast, under a proposed Chapter 11 reorganization plan, Carl Icahn and associates could take full control of the company and inject $100 million into its operations, according to Bloomberg. This proposed investment by Icahn was however conditional on the company winning the right to terminate its collective bargaining agreement with its union, as well as the securement of over $100 million from the State of New Jersey. Trump Entertainment won its court battle with the union, but this decision has been appealed. Meanwhile, state officials have suggested that they will not donate taxpayer money to the casino.
Should Trump Entertainment’s Chapter 11 bankruptcy be converted into a Chapter 7 bankruptcy, the company will lose the right to make decisions and business operations will cease. While secured debts, like those held by Icahn, will keep their top-level status, it is difficult to tell how much money would result from a liquidation or precisely how it would be allocated.
Trump Entertainment’s fall into bankruptcy has been well documented by this creditors’ rights and bankruptcy attorney. Checkout at the previous coverage to get the full story.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

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 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

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

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 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

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.
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!