Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Trump Entertainment Loses Anti-Pensioner Bid
Author: Joel R. Glucksman
Date: October 9, 2014
Key Contacts
Back
Trump Entertainment, the one-time casino enterprise formerly-owned by the millionaire who begrudgingly shares its name, encountered yet another setback in court Oct. 3.
According to The Wall Street Journal, the company lost a bid to immediately stop payments into a pension fund for its 1,135 unionized employees at the Trump Taj Mahal. Trump Entertainment sought emergency relief from these payments, suggesting that they posed a threat to its ability to restructure. The casino company – which now owns only the Trump Taj Mahal – filed for protection under Chapter 11 of the bankruptcy law in September.
Trump Entertainment’s argument was rejected by Judge Kevin Gross, who noted that a debate regarding the company’s contract with Unite Here Local 54 would occur on Oct. 14 and that pension funding would be included in talks then, the news source reported. Until that point, the organizations are required to continue negotiating.
Gross also said that the U.S. Bankruptcy Code prevented him from allowing Trump to permanently reject a portion of its collective bargaining agreement with Unite Here Local 54, according to Reuters. However, while this decision provides some temporary relief, it appears that it would be possible for him to allow Trump Entertainment to reject the agreement as a whole, depriving employees of health benefits as well as pension payments. For its side, Trump Entertainment has said that ending pension payments would save it about $3.7 million annually.
On Oct. 2, a pension fund lawyer said that Trump Entertainment was using this trip through bankruptcy to clean up its business before delivering it to Carl Icahn, the company’s main creditor, the news source reported.
As a tax attorney at Scarinci Hollenbeck LCC, a general practice law firm in the New York/New Jersey metropolitan area, I’ve followed Trump Entertainment’s bouts with bankruptcy, check out my previous posts here:
- Trump Entertainment Seeks To Stop Pension Payments
- Taj Mahal Casino of Atlantic City May File For Bankruptcy
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, 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
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
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.