Taj Mahal – the Atlantic City-based casino that narrowly escaped closure last year, is about to have a new owner. The billionaire Carl Icahn saved the casino from closure by investing the sum of $20 million.
The previous year was a fateful one and if it was not for Icahn’s help, the venue would have been the fifth one based in Atlantic City to close doors within a couple of months.
Icahn was believed to be the person, capable of saving the struggling casino by turning its debt into ownership and a hearing was scheduled to take place a few days ago, so Carl Icahn could acquire two casinos from Trump Entertainment Resorts Inc.
However, the hearing in question was postponed for the end of January. Actually, the purpose of the hearing was the approval of Icahn’s plan for the future of the casino venues he is going to obtain.
The reason for the delay was that the committee of the unsecured creditors claimed they have not received detailed information about Icahn’s plan to expand his business on the territory of Atlantic City. For the time being, he is the owner of Tropicana Casino & Resort as he acquired the venue five years ago when it filed for bankruptcy.
The billionaire agreed to provide more information and the court hearing was rescheduled. It is to take place on January 28th. Next Wednesday the sum of $20 million granted to the casino in order to save it from closure is also going to be approved.
Back in September 2014 Trump Entertainment filed for Chapter 11 protection but Icahn’s investment kept it opened and prevented 3,000 workers from losing their job.
As a matter of fact, employees may rest assured that they are not going to get laid off before the above-mentioned hearing takes place and before the Judge announces the final decision.
Basically, Taj Mahal workers are given only one more week after which their contracts may be terminated.
What made the unsecured creditors object Icahn’s intentions was the fact that the plan he is about to present to the Court, provides them with the modest amount of $1 million in cash. They are also eligible for filing lawsuits for recovering a small percentage of their investments. The committee has the right to object Icahn’s plan until February 13th.
Actually, that is not the first occasion when the Trump casinos file for bankruptcy. Back in 2010, a lien debt was issued and as soon as a second one became fact, the creditors became shareholders.
The Delaware Bankruptcy Court is in charge of Taj Mahal’s case.
