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
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
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 […]
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 […]
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, […]
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 […]
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 […]
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!
