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
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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
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.