SBC News Voice of the Sports Betting Industry
Billionaire investor Carl Ichan has brokered a last minute deal with Trump Entertainment Resorts workforce union representatives to save the closure of the Trump Taj Mahal, Atlantic City’s second biggest casino.
Ichan Enterprise currently owns $292 million of Trump Entertainment debt, the firm stated that it would take over the casino operations and inject operating capital if the New Jersey Senate were to approve tax breaks for the Taj Mahal.
New Jersey Senate stated that it would only agree tax breaks if it reached a labour agreement with Trump Entertainment’s New Jersey Union, which represents 1,100 casino employees.
The Union had rejected earlier labour re-planning proposals put forward by Ichan ,and at one point it seemed highly likely that the casino operator would enter Chapter 7 bankruptcy.
However Ichan re-negotiated with the Union that his firm would input a further $20 million to help keep the casino workforce. The Union agreed to the deal which would save 3000 Atlantic City jobs.
Business news sources report that New Jersey Senate President President Stephen Sweeney is expected to propose legislation that will give the Taj Mahal about $150 million in tax breaks, giving Ichan his sweetener.
In a public letter Ichan stated
“Even though I believe that Atlantic City will be great again someday, many people would still argue that it would be a better financial decision for me to let the Taj close and wait to see whether a global settlement can be reached,”
