Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Trump Entertainment seeks to stop pension payments
Author: Joel R. Glucksman
Date: October 2, 2014
Key Contacts
Back
The much beleaguered Trump Entertainment – a company formerly associated with celebrity millionaire Donald Trump – will go before a bankruptcy judge Oct. 2 in an attempt to get out of its pension obligations, according to The Wall Street Journal.
Trump Entertainment attorney Kris Hansen told Judge Kevin Gross that escaping the pension payments that it is obligated to make is essential to the company’s survival, the news source reported. Hansen went on to compare the pension fund to “a black hole.” Gross agreed to hear the pension question in light of the “immediate and irreparable” harm to the gambling company.
Union and pension fund attorneys argued that the hearing should not occur because halting pension payments is just one of the things that needs to happen for Trump Entertainment to exit bankruptcy for the fifth time, according to the Journal. The company would also need to receive tax relief from Atlantic City, money for capital improvements from the state of New Jersey and debt relief from Carl Icahn, a secured lender. A failure of any of these events to occur would almost certainly cause the company to go under, Kathy Krieger, lawyer for a union that represents 1,200 Trump Taj Majal workers, told the news source.
Already, Atlantic City Mayor Don Guardian has publicly rejected the company’s call for tax relief, the Journal reported, which signals poorly for the former gambling empire’s future. Union lawyer William Josem said that many casino workers already struggle to put food on the table with the pay packages they are receiving, and that further cuts could lead some to lose their homes. Nevertheless, attorney for Mr. Icahn’s funds Allan Brilliant told the news source that there would be no debt relief should the pension issue not come off smoothly.
Trump Entertainment has been struggling for years, causing Donald Trump to file a lawsuit recently demanding that his name be taken off of the Trump Taj Majal and the recently closed Trump Plaza, The Associated Press reported.
“I want it off both of them,” Trump said, according to the news source. “I’ve been away from Atlantic City for many years. People think we operate [the company], and we don’t. It’s not us. It’s not me.”
Atlantic City is taking hit check out some of my previous posts on bankruptcy of the city’s most popular casinos:
- Taj Mahal Casino of Atlantic City May File For Bankruptcy
- Atlantic City’s Revel To File For Bankruptcy Again
- Atlantic Club Casino Seeks Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- 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
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
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.