New Jersey’s Atlantic City, once a thriving haven for gamblers and casinos, appears to be continuing its downward trend.
The Trump Taj Mahal, a 2,248-room, 24-year-old hotel-casino situated on Atlantic City’s boardwalk, may file for protection under Chapter 11 of the bankruptcy law in the next few days, according to the New York Post. The casino has broken some of its loan agreements and has failed to reach an out-of-court solution with its creditors, sources said.
Some of those involved with the negotiations had hoped that Carl Icahn, who owns a significant part of the Taj Mahal’s debt, would agree to a debt-for-equity deal, the Post reported. This would have likely been enough to keep the hotel-casino out of Chapter 11. This appears not to be happening.
Though the casino – and operating company Trump Entertainment Resorts – bear Donald Trump’s name, the mogul retains less than a 10 percent stake, according to the news source. Marc Lasry’s Avenue Capital led a group of hedge funds that bought the company out of a previous bankruptcy in 2009.
Angry about the state of disrepair into which the Trump Plaza and the Trump Taj Mahal have fallen, Trump recently filed a lawsuit against the company, alleging that it tarnishes his personal brand and confuses customers, according to The Associated Press.
“Since Mr. Trump left Atlantic City many years ago, the license entities have allowed the casino properties to fall into an utter state of disrepair and have otherwise failed to operate and manage the casino properties in accordance with the high standards of quality and luxury required under the license agreement,” Trump wrote in his lawsuit, according to the news source. “The Trump name … has become synonymous with the highest levels of quality, luxury, prestige and success.”
It remains to be seen if bankruptcy proceedings for the Trump Taj Mahal will be any more palatable to The Donald.
Taj Mahal isn’t the only casino in Atlantic City to face bankruptcy, recently I wrote an article discussing the downturn of the $2.2 billion casino, Revel:
Atlantic City’s Revel To File For Bankruptcy Again
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
