The Real Deal New York

Carl Icahn, Trump Resorts seek labor concessions at Taj Mahal

Billionaire creditor backs plan to pull Atlantic City casino out of bankruptcy

September 29, 2014 04:10PM

From left: Carl Icahn and Trump Taj Mahal in Atlantic City

From left: Carl Icahn and Trump Taj Mahal in Atlantic City

Trump Entertainment Resorts and billionaire investor Carl Icahn are trying to pull the Taj Mahal casino in Atlantic City out of bankruptcy, and they plan to take on organized labor in order to succeed.

The plan calls for a new contract in 2017 that would end pension contributions and cut health insurance coverage for employees, Reuters reported. The measure is part of a larger effort backed by Icahn, who is owed $286 million by the resort company and is seeking to turn the debt position into ownership of the Taj Mahal, according to the news service.

Icahn and Trump Entertainment Resorts are also seeking a number of concessions from Atlantic City and New Jersey, including $25 million in tax credits, a five-year freeze on its tax rate and a reduction of the property’s value from $1 billion to $248 million, Reuters reported.

Trump Entertainment Resorts recently filed for chapter 11 bankruptcy protection, the fifth time it has done so since 1991. Two other Atlantic City casinos — the Showboat and the Revel — announced they would close last month. [Reuters]Tom DiChristopher

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