The Trump Taj Mahal will not go bankrupt for now

The casino resort hotel called Trump Taj Mahal in Atlantic City might have to close its doors.
Nevertheless, it has just been saved from bankruptcy – for the moment at least – following a decision by Judge Kevin Gross of the federal bankruptcy court.
Indeed, he allowed the establishment to cancel its contract with unionized workers.

Saving 3,000 jobs

At the hearing, the owners of the Trump Taj Mahal asked the court to be allowed to terminate a contract with the union on grounds that the company could not survive by respecting their commitments in terms of pension and health care.
The next step for the operators is to get a favourable outcome of a task force that was appointed by New Jersey Governor Chris Christie to assess the need for assistance from the state for the Taj Mahal and other casinos that are facing difficulties.
Robert Griffin, CEO of Trump Entertainment, said he was particularly proud of the efforts of his team to keep the Taj Mahal open, and to continue offering its guests an experience of first-class games, but also to save 3,000 jobs which is particularly difficult nowadays for the Atlantic City businesses.

Criticism of the union

Obviously, as was expected, the union did not welcome the decision of the court.
The spokesman, Bob McDevitt, said that they certainly risk displeasing the many workers who relied on the contract for their retirement and their health.
He has made ​​it clear that they are planning to continue to fight – not in court this time, but in the streets.
Bob McDevitt also questioned the motivations of the main investors in the Trump Taj Mahal casino, saying the cancellation of the contract had nothing to do with the financial situation of the company.

100 million dollar investment

Carl Icahn, who owns $286 million of the debt from the Taj Mahal, has rejected claims from the union.
Additionally, he stated that he had saved the Tropicana four years ago, using a similar strategy that is now used for the Taj Mahal.
He also reiterated that he was willing to exchange the debt of the complex, and said he plans to invest $100 million to revive the establishment, but only if the state comes in to help with a tax relief and grants.