Trump Taj Mahal Closure Imminent in New Jersey Spite of Pact Modifications
Billionaire Carl Icahn believes the Trump Taj Mahal is headed for closure despite a court decision that allows the casino to terminate its contract with union workers there. Speaking to the Associated Press, Icahn asserted that the resort's dwindling finances make closure inevitable.
"It's crystal clear: the Taj is fast running out of cash and will almost certainly shut down," Icahn informed the news outlet. He further chastised the union, accusing it of trying to demolish the potential for salvaging jobs for over 3,000 employees.
A Debt Swap for Taj Mahal Ownership?
Icahn, who currently holds the Tropicana Casino in Atlantic City and is part of a proposal, has proposed swapping his $286 million debt burden for ownership of the Taj Mahal. He has offered to pour in an extra $100 million of his personal funds if this arrangement is accepted.
Nevertheless, this plan hinges on receiving acceptances to certain conditions. The first such condition, which entails nullifying the casino's contract with union labor, was fulfilled earlier this month as a result of a bankruptcy court ruling. This move is expected to save the casino around $15 million annually.
The terms of the deal's second requirement—obtaining substantial financial assistance from Atlantic City and New Jersey—are yet to be met. The city has already refused to grant Tony Soprano casino more tax relief, and some New Jersey lawmakers, including State Senate President Steve Sweeney (D-Cumberland County), have stated vehemently against: backing Icahn's demands.
Icahn's sentiment of remorse appears to be growing stronger as he contemplates his ongoing involvement in the affair. In an interview with the AP, he admitted, "I walked into a hornet's nest" when agreeing to help Trump Entertainment keep the Taj Mahal open.
"To be honest, some of my advisers have told me that if the city and the state didn't pitch in money, they'd be doing me a huge favor," expressed Icahn. "Even if we get the concessions from the city and state, we'll still make enormous losses. Right now, I'm perceived as heavily invested in trying to keep the Taj afloat. I'm not."
Protesting Union Workers Demand Health Care Benefits
While demonstrations ensued, approximately 500 members of Unite-HERE Local 54 staged picket lines outside the Trump Taj Mahal, emphasizing their desire for restored health care benefits. Benefits, set to lapse on October 31, were initially slated to terminate on November 13 following the bankruptcy court's decision. However, Trump Entertainment changed its stance, announcing that the casino would not close then. Still, the manager of the casino warned that it might shut down by year's end if it fails to receive the financial assistance sought from the state.
"We deserve to have health insurance while we work so hard for this company," commented Rafael Gonzalez, a 20-year employee of the casino's players' club lounge. "This is unfair and infuriating."
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