Casino operator Trump Entertainment Resorts is heading towards a tax sale of up to $22m after reaching an agreement with Atlantic City.
A bankruptcy court will need to approve the arrangement, which would enable the city to hold a tax sale of Trump Entertainment’s back debt.
The operator’s right to appeal the amount of its unpaid 2014 taxes will still be preserved by the new terms.
The only remaining casino owned by Trump Entertainment, the Trump Taj Mahal in Atlantic City is set to close on 12 December, with the tax sale planned for the previous day.
There is a chance that it could remain open however, if a deal can be reached with its main union on the restoration of health insurance and pension plans for its 3,000 employees.
Carl Icahn, who owns $286m worth of shares in Trump Entertainment, wishes to invest in a new payment plan, but has so far been unable to reach an agreement with the Unite-HERE union.
It was announced in September that the casino would be closing – the same month that Trump Plaza closed following a 31% revenue loss this year.
Five Atlantic City casinos will have closed for business by the end of the year, as Showboat, Revel and the Atlantic Club have also shut down.