CASINO

Atlantic Casino Workers March Against Icahn; Trump Casino Bankruptcy Judge Suggests Liquidation

TAGs: Atlantic City Casino, Carl Icahn, trump entertainment, trump plaza, trump taj mahal

Hundreds of union workers marched on Atlantic City’s Boardwalk on Wednesday, protesting the billionaire Carl Icahn‘s role to the anticipated closure of the Taj Mahal casino.

Atlantic Casino Workers March Against Icahn; Trump Casino Bankruptcy Judge Suggests LiquidationPresident of Local 54 of the Unite-HERE union Bob McDevitt led the march from the Taj Mahal to the Tropicana Casino and Resort, which Icahn also owns.

“We’re waiting to see what you want to be, Mr. Icahn — the good guy or the bad guy,” McDevitt said. “We’ll take you down either way!”

It was the union’s third public protest aiming to reverse the planned closure, including the one whereas the members sat down on the Atlantic City Expressway and blocked the traffic.

Icahn would have acquired the casino by swapping the $286 million in company debt he holds for ownership of the company. His planned $100 million investment into the Taj Mahal, however, is contingent on receiving $175 million in state and local tax break, which most likely won’t happen as it has been rejected at every level of government.

Trump Entertainment Chief Executive Officer Robert F. Griffin sent a letter to its 3000 employees saying that the Taj Mahal and the workers’ jobs could be saved if the union would drop its appeal.

Judge Asks If It’s Time to Liquidate

U.S. Bankruptcy Judge Kevin Gross in Wilmington, Delaware scheduled a hearing on December 4 for the company to “show cause why the court should not convert the case” to a formal liquidation under Chapter 7 of the bankruptcy code.

“Trump Entertainment Resorts Inc. is losing money, its assets are deteriorating, and the Atlantic City, New Jersey, casino-owner’s prospects of turning things around are bleak. Why shouldn’t it just be liquidated,” asked Gross.

Under Chapter 7 of the U.S. Bankruptcy Code, the trustee liquidates all the assets and distributes the proceeds to the creditors.

Trump Entertainment filed for bankruptcy Sept. 9 and shut the Trump Plaza days later and Trump Taj Mahal is set to close Dec. 12, becoming the fifth Atlantic City casino to shutter this year.

Comments

views and opinions expressed are those of the author and do not necessarily reflect those of CalvinAyre.com