Taj Mahal is supposed to stay open through the holidays and it will continue operating for an indefinite period of time in 2015.
The closure of the venue was prevented as the billionaire Carl Icahn invested $20 million with the aim of keeping it open while the bankruptcy proceedings are figured out.
The attorney of Trump Entertainment Resorts, Erez Gilad, said that the funds deposited by Mr. Icahn will help the struggling casino avoid closure and remain open for visitors for a considerable period of time.
Although the announcement for the prevented closure was made last week, the loan commitment was signed last Sunday evening.
During the court hearing, which took place in the US Bankruptcy Court in Wilmington, Mr. Gilad said that the investment made by Icahn enables the Taj Mahal executives to ask for permission to stay open through the holidays.
The fact that Taj Mahal remains open is a huge relief to the 3,000 employees who have been repeatedly warned that they would most probably lose their jobs really soon.
Mr. Gilad said that there will be another court hearing, scheduled for January next year. During the hearing, the loan will be taken into consideration. Nevertheless, workers and players may rest assured that the venue will not close before the court hearing in question takes place.
According to the judge who is in charge of making decisions, related to the fate of Taj Mahal, the $20 million grant will most probably be insufficient for keeping the venue open for one more year.
Mr. Gilad said that Carl Icahn is no longer willing to invest the amount of $100 million but the sum of $20 million will help the managers keep the casino open at least until it revamps the Chapter 11 exit plan.
In conclusion, Mr. Gilad said that discussions with the UNITE HERE Local 54 will continue until an alternative for avoiding bankruptcy is found.
Judge Kevin Gross warned Trump Entertainment executives that they may face bankruptcy liquidation unless they come up with a reliable plan for preserving the casino.
Taj Mahal has been going through a lot of issues over the last couple of months and it was not until last month when the New Jersey authorities considered providing the struggling casino with a tax relief.
Unfortunately, when the tax breaks were about to be discussed by local officials, Mr. Carl Icahn refused to sign the agreement that has already been talked over and signed by the company and the union – an action, which has immediately put Taj Mahal back in danger of closure as the legislation affairs stopped moving.
