Trump Taj Mahal bankruptcy plans approved
The Trump Taj Mahal will not be forced to close, after billionaire Carl Icahn had his bankruptcy restructuring plan approved by a federal judge on Thursday.
US bankruptcy judge Kevin Gross said at a hearing in Wilmington, Delaware that the casino “will remain open”, clearing it to come out of bankruptcy proceedings.
Under the terms of the plans, the Icahn lender group will gain control of both casinos owned by Trump Entertainment, the Taj Mahal and Trump Plaza, by converting $292m of debt into equity in the reorganised company.
The Icahn group will also provide $13.5m of funding for the Taj Mahal after it exits bankruptcy proceedings.
The Taj Mahal had been set to close in December, but was allowed to remain open through bankruptcy proceedings after Icahn, the casino’s new owner agreed to put up the necessary $20m to keep it open into 2015.
The casino first filed for bankruptcy in September, in a year which saw four out of 12 casinos close in the city, including the Trump Plaza.
Unite Here Local 54, the union that represents the casino’s 1,100 employees, has been at odds with the Taj Mahal and plans to hold a march today (Friday) to protest against the loss of health-care retirement rights, which is allegedly at the hands of Icahn.
Icahn acquired Tropicana casino out of bankruptcy proceedings for $200m in 2010.
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