Trump Taj Mahal Thrown A $20 Million Lifeline
December 25, 2014 12:54 pmNew Jersey’s Trump Taj Mahal casino was due to shut its doors on December 20th, but the property is still open after investor Carl Icahn provided it with a $20 million lifeline. Although the entrepreneur did not mention how long the loan would keep the gambling venue running, he did at least express optimism that the money could help the Taj Mahal remain open during the quieter winter season until business improves in the summer. The extra time could then be used to resolve a dispute with its union, the Local 54 of UNITE HERE, over health and pension issues.
Carl Icahn has $292 million of the Taj Mahal’s debt, and the downside to his deal is that the $100 million he had previously offered, contingent on the city providing the business with $175 million in tax relief, is now off the table. Even so, the latest $20 million offer still needs to be approved by the bankruptcy court when the case is heard on January 9th.
The Trump Taj Mahal’s waning fortunes of late have followed those of another four of Atlantic City casinos which were forced to shut shop in 2014, including the Atlantic Club in January, the Showboat on August 31st, the Revel on September 2nd, and the Trump Plaza on September 16th. It was then widely accepted the Trump Taj Mahal would follow suit, but the restructuring plan proposed by Icahn provides the beleaguered casino with “a one-year runway to exit bankruptcy,” according to Trump Entertainment Resorts lawyer Erez Gilad.
The deal also gives an opportunity to find a way of protecting some of Atlantic City’s casino industry workers jobs, which would have risen to 8,000 losses this year had the Trump Taj Mahal been forced to close. As Yomari Blanco from the Trump Plaza, explains:
“It’s definitely a tough Christmas this year. When I was working, I’d go out and get gifts for people and not worry about it because I had my job to rely on. Now I don’t. I haven’t done any Christmas shopping this year. I’m baking cookies and cakes and giving those to people as my gifts.”