Yesterday, a bankruptcy judge from the Delaware court allowed the billionaire Carl Icahn to continue with the reorganization plan, related to the Atlantic City-based Taj Mahal Casino.
Judge Kevin Gross, who approved of the Chapter 11 reorganization plan, permitted Carl Icahn to turn the debt the casino into ownership and acquire all reorganized stock of Trump Entertainment Resorts. Currently, the company owes more than $290 million to Carl Icahn.
Mr. Icahn commented on the reorganization plan and said that he was not going to close one of the most iconic casinos in Atlantic City. On the contrary – the property is supposed to undergo thorough refurbishment and continue accepting players.
As already reported, the Trump name will stay on the facade of Taj Mahal as mere days ago, Carl Icahn and the Trumps inked an agreement.
The decision of the soon-to-be owner to keep the casino open would definitely be beneficial to the local economy which is currently struggling. Back in 2014, four casinos closed, which had a devastating effect on the economy as the casino industry used to be a source of decent annual income.
Taj Mahal was also among the casinos that were threatened to close and as a result, leave another 3,000 people out of job but it seems like this issue is to be overcome.
Yesterday, during the court hearing, the attorney of Trump Entertainment Erez Gilad told the judge that expectations are for establishing a stable financial condition and making Trump Taj Mahal the most popular and attractive casino venue on the territory of Atlantic City.
However, before the above-mentioned plan comes true, there are several setbacks that need to be dealt with. The issue related to the pension and health benefits workers no longer receive has been brought to a standstill. Back in 2014, the Judge approved the request of Trump Entertainment Resorts to cut workers’ benefits but if the decision is overturned, Carl Icahn has the right to terminate the restructuring agreement.
According to the financial adviser of the company, they will have “ample liquidity” and Taj Mahal will continue operating while the final decision of the Court is announced. Previously, Trump Entertainment Resorts requested certain tax breaks from Atlantic City officials and claimed that the sum of $150 million is critical for the reorganization process. Now, they expect to save up the same amount within a few years as they hope the legal battles have come to an end.
