Trump Taj Mahal casino exits bankruptcy

ATLANTIC CITY, N.J. -- The name on the side of the building still says "Trump," but Atlantic City's Taj Mahal casino is now owned by a different billionaire -- Carl Icahn.

See Full Article

The Trump Taj Mahal casino emerged from bankruptcy Friday and was taken over by Icahn, the billionaire investor who now owns two of the city's largest casinos. (He also owns Atlantic City's Tropicana casino).

Trump Entertainment Resorts exited from Chapter 11 protection and became a wholly owned subsidiary of Icahn Enterprises LP.

The move also extinguished the last remaining 10 per cent ownership stake of Republican presidential candidate Donald Trump in the casino company, even though the Trump Taj Mahal will continue to bear his name.

Trump had not owned or had anything to do with the casino company since 2009 aside from the 10 per cent stake in return for the use of his name.

"The Taj is one of Atlantic City's signature properties," said Icahn, who acquired the Tropicana in a similar fashion from bankruptcy court by buying up its debt at a steep discount, and eventually taking it over.

"Although both Atlantic City and the Taj have had a few tough years, today marks the beginning of the turnaround," he said. "Just a few years ago Tropicana was in bankruptcy and its fate uncertain, but since emerging in 2010, we have turned that property around and it has become one of Atlantic City's few success stories. I am confident we can and will do the same for the Taj."

Icahn has been keeping the casino afloat since it filed for bankruptcy in Sept. 2014. He recently won a key court ruling upholding the company's elimination of health insurance and pension benefits for unionized workers.

Icahn had promised to withdraw financial support for the Taj Mahal if the union succeeded in restoring worker benefits that he considers unaffordable.

Bob McDevitt, president of Local 54 of the Unite-HERE casino workers union, has been locked in a bitter battle with Icahn over the Taj takeover that has seen both men criticize each other in unusually personal terms. The union leader called Icahn "a malignancy that needs to be cut out," while Icahn likened McDevitt to a mobster running an extortion racket.

McDevitt said the union has yet to reach a contract agreement with Icahn, but said talks are continuing slowly.

McDevitt said he has not yet seen the bankruptcy court's final order, but expressed hope that relations with the casino's new owner might improve now that Icahn officially owns it.

"Maybe now that Carl Icahn has full possession of the property, he'll start treating the workers the way you would if you have long-term interest in making the property successful," McDevitt said.

McDevitt has led nine public protests against Icahn's handling of the ownership transition of the Taj Mahal, including being arrested for blocking traffic on the Atlantic City Expressway by sitting down in the roadway.

Trump Entertainment's Chief Gaming Executive, Mike Mellon, said, "The company and its employees are excited to have weathered through these tough times and look forward to the return of Trump Taj Mahal to its prominent position in the Atlantic City market."

The casino repeatedly came close to closing since 2014, and ranked seventh out of Atlantic City's eight casinos last year in terms of gambling revenue. The $180.2 million it won last year was down 16.5 per cent from 2014.



Advertisements

Latest Economic News

  • Company appeals Churchill rail ruling in year-long attempt to restore service

    Economic CTV News
    WINNIPEG -- The company that owns a broken rail line into Churchill, Man., says it is appealing a federal regulatory ruling that requires it to repair the track. Hudson Bay Railway Co. was ordered last week by the Canadian Transportation Agency to immediately begin repairs to the track, which is the only land link to the subarctic community of 900 people. Source
  • Quarter of seafood sold in Metro Vancouver is mislabelled: researchers

    Economic CTV News
    VANCOUVER -- A new study shows that up to a quarter of the seafood sold in Metro Vancouver is mislabelled, with tilapia masquerading as snapper and catfish passing as cod. Researchers at the University of British Columbia collected 281 samples of fish and other seafood from restaurants and grocery stores, then tested the DNA to determine the true species. Source
  • Saputo urges end to milk ingredients pricing system opposed by U.S.

    Economic CBC News
    Saputo Inc., one of Canada's largest dairy companies, wants to end a domestic milk ingredient pricing system that has angered the United States, chief executive Lino Saputo Jr. said on Monday, showing a rare crack in solidarity among processors and the country's sheltered dairy farmers. Source
  • Proposed class-action lawsuits filed against Bank of Montreal, CIBC's Simplii

    Economic CTV News
    TORONTO -- Proposed class-action lawsuits have been filed against Bank of Montreal and CIBC's direct banking division Simplii Financial over recently disclosed cybersecurity breaches impacting up to 90,000 customers. Law firms Siskinds LLP and JSS Barristers say they have filed the proposed class actions against the two Canadian banks in the Ontario Superior Court of Justice, alleging the institutions failed to establish robust security measures to protect clients' sensitive information. Source
  • South Korea joins Japan in halting Canadian wheat imports after GMO plants found

    Economic CTV News
    CALGARY -- South Korea has joined Japan in suspending trade in Canadian wheat following the discovery of genetically modified plants in southern Alberta. Global Affairs spokesman Jesse Wilson says it's standard protocol in both countries to temporarily close markets in such cases. Source
  • Volvo sets goal of 25% recycled plastics in cars from 2025

    Economic CBC News
    At least 25 per cent of the plastics used in new Volvo car models from 2025 will be from recycled materials, the Chinese-owned company said on Monday in an anti-pollution plan praised by the United Nations. Source
  • Magna plans electric vehicle joint ventures with Chinese company

    Economic CBC News
    Magna International Inc. says it will form two new joint ventures with a Chinese company to engineer and build electric vehicles. The Ontario-based auto parts company and Beijing Electric Vehicle Co. Ltd., a subsidiary of the BAIC Group, are expected to take over an existing BAIC manufacturing facility where the first production vehicles are planned for 2020. Source
  • Morneau didn't break conflict law introducing pension bill: ethics watchdog

    Economic CBC News
    Finance Minister Bill Morneau wasn't in a conflict of interest when he introduced a pension bill in the House of Commons while he still owned shares in his family's pension services company, according to the ethics commissioner. Source
  • Baytex Energy and Raging River Exploration sign $2.8B merger deal

    Economic CBC News
    Baytex Energy Corp. and Raging River Exploration Inc. have signed a $2.8-billion deal to merge in a bid to boost the companies' East Duvernay Shale operations in Alberta. The combined company, which will operate under the Baytex name, is expected to have production of approximately 94,000 barrels of oil equivalent per day from a diverse portfolio of oil assets that includes the Viking, Peace River, Lloydminster and East Duvernay Shale regions in Canada and the Eagle Ford region in Texas. Source
  • Theatregoers with epilepsy warned of seizure risk from bright lights in Incredibles 2

    Economic CBC News
    Disney is warning theatregoers with epilepsy not to watch its latest summer blockbuster because several scenes in the movie can trigger seizures because of repeating bright flashing lights. The animated movie Incredibles 2 opened last weekend at No. Source