The closure of Taj Mahal was officially announced. It is supposed to take place on December 12th. Bearing in mind all factors that led to the financial collapse of one of the most popular venues in Atlantic City, the Judge, responsible for the bankruptcy proceedings, understandably raised the question about the venue liquidation and for the communities to stop being mislead that things will ever be improved.
Meanwhile all attempts for remedying the situation turned out to be unsuccessful. Casino’s assets are getting fewer, the current owner of the venue – Trump Entertainment Resorts Inc., is constantly reporting significant losses.
Judge Kevin Gross is in charge of solving the complicated matters, concerning Taj Mahal. He required casino managers to provide him with a convincing proof why he should announce casino’s bankruptcy instead of opting for formal liquidation, in accordance with Chapter 7 of the Bankruptcy Code. The hearing is supposed to take place on 4th of December.
Managers of Taj Mahal announced a long time ago that the available funds are not enough for starting a reorganization procedure and making attempts for keeping the venue open. That is another factor that supports the standpoint of Gross about the liquidation of Taj Mahal.
Chapter 7 of the Bankruptcy Code says that a trustee of a particular company is enabled to decide what the fate of the company will be, sell its shares if needed and pay what they owe to creditors.
Workers Still Hopeful
The casino is supposed to become the fifth one that shuts during 2014. The majority of people involved in the closure of Taj Mahal believe that there is one person who is absolutely capable of saving the venue from bankruptcy by turning its debt into ownership.
Carl Icahn was said to be that person but his requirements were not quite acceptable for workers. Icahn wanted to cut down on their pension and health benefits. Employees organized a number of protests as they are convinced that the billionaire can save the casino without reducing their benefits. Workers went further and took the matters to court but, unfortunately, they lost the battle. The Judge gave their consent to the termination of the collective contracts.
According to the information released, Icahn was supposed to invest $100 million into Taj Mahal, which made employees hopeful that they will keep their jobs.
As a matter of fact, there is such a possibility indeed. That is what Robert Griffin, CEO of Trump Entertainment, announced yesterday. He said that Taj Majal’s employees can continue working for the company on grounds that the union does not have any pretensions towards the reduction of benefits.
However, Icahn has already announced that in order to save the casino, he would need the help of New Jersey’s authorities who can make a compromise as far as the tax rates are concerned.
When asked about the issues with Taj Mahal, Carl Icahn said that he is really fed up with that deal and sometimes he regrets having started discussions with the managers of Trump Entertainment.
