Workers at Atlantic City’s Trump Taj Mahal casino found themselves on a roller coaster in December as the fate of their casino hung on a series of announcements on possible deals—and deals falling apart—to save the property.
The casino was slated to close December 20, but was open at the end of the year as billionaire Carl Icahn lent Trump Entertainment another $20 million to keep the Taj Mahal running until a “global settlement” can be found.
Although a proposed deal with Local 54 of UNITE HERE fell apart, Icahn stepped up.
“Even though I have no assurance that the state will provide aid or that the union will drop its appeal, I will send you a commitment letter to provide you with up to $20 million of additional financing (in accordance with your budget and subject to the terms and conditions contained therein) to keep the Taj operating throughout the bankruptcy proceedings,” Icahn wrote to Trump CEO Bob Griffin, “and I will also commit to work collaboratively with the state, the city and the union to try to forge a global settlement that will bring real stability to the Taj and its employees.”
Icahn has been seeking to take over the property from Trump Entertainment through bankruptcy proceedings. The billionaire controls $292 million of the casino’s debt. Under a bankruptcy plan, he would exchange that debt for ownership of the casino and then invest another $100 million into the Taj.