Trump Taj Mahal given pathway out of bankruptcy
Creditors have reached an agreement on a restructuring plan that would take Trump Taj Mahal casino out of bankruptcy proceedings.
A panel representing parent company Trump Entertainments Resort’s unsecured creditors met on Thursday and worked out a plan that would see the Atlantic City operator through the process and exit bankruptcy on schedule.
Trump Entertainment Resorts filed for bankruptcy last September and its Trump Plaza Casino closed in the same month.
The Taj Mahal was also set to close in December, but was allowed to remain open through bankruptcy proceedings after prospective owner Carl Icahn injected it with a $20m emergency loan.
The plans will see Icahn receive equity in the restructured company while unsecured creditors would get to split a $1m fund for a recovery of less than 1%.
This had proved to be a stumbling block but the unsecured creditors have managed to secure an increased fund.
Karen Giannelli, a lawyer for the committee of unsecured creditors said: “The most significant aspect is the $1m fund for unsecured creditors has been increased to $3.5m.”
Giannelli also said that the unsecured creditors will “stand down on all of the litigation” against the lenders and won’t be investigating them any further.
Four casinos closed in Atlantic City in 2014.
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