The cash-strapped Trump Taj Mahal in Atlantic City has announced that it will remain open through at least November 30. This can be attributed to its court victory to void labor contracts that allow it to stop making pension and health contributions to employees starting next weekend. It also cleared the way for a Culture Club concert to continue as planned at the property on November 28.
The situation at Trump Taj Mahal is not without controversy. Local 54 Unite Here is protesting outside the property this weekend to voice its displeasure in losing health and pension benefits. There are 11,000 Local 54 members in Atlantic City. About 10 percent work at Trump Taj Mahal.
Carl Icahn is prepared to infuse Trump Taj Mahal with $100 million in cash to keep it open if favorable conditions are met. This includes permanent labor agreements and favorable tax payments to the state and local governments. He currently holds about $286 million in mortgage debt belonging to Trump Taj Mahal’s parent company, Trump Entertainment.
Icahn owns Tropicana Atlantic City. It was acquired through a similar transaction related to a bankruptcy.
Four Atlantic City casinos have closed this year due to the ailing market. Atlantic Club closed in January. Showboat shuttered in August. Revel and Trump Plaza ceased operations in September.