Trump Taj Mahal Back Out of Bankruptcy with Carl Icahn at the Helm

The Trump Taj Mahal is officially out of Chapter 11 bankruptcy and in the clutches of billionaire corporate raider Carl Icahn, as a wholly owned subsidiary of Icahn Enterprises.
Billionaire Carl Icahn has rescued the Trump Taj Mahal from bankruptcy, but nevertheless faces opposition from the unions. The deal severs Donald Trump’s final tie with the AC casino industry, although his name shall remain included in the deal.
Plus in the very week that New Jersey Governor Chris Christie, having bowed out from the presidential competition himself, pledged his help for Donald Trump for the GOP nomination, Icahn’s takeover represents the final chapter in Donald Trump’s Atlantic City and video gaming history.
Trump got out of Atlantic City in 2009, selling what was left associated with 888 casino mobile android Trump Entertainment casino empire he built in the eighties and nineties to a group of hedge funds and business bond holders.
He has already established nothing in connection with the management of the Taj, or its now defunct cousin home, the Trump Plaza, from the time. Nonetheless, the arch negotiator was able to retain a 10 percent stake in Trump Entertainment, in substitution for enabling the ongoing company to retain the Trump brand name.
In 2014, Trump was incensed by exactly what he saw as Trump Entertainment’s mismanagement of the brand and litigated to have their name eliminated from the casino. But following Icahn’s intervention, he relented, and the name will remain.
Trump Ties Severed
That 10 percent stake is now gone, severing Trump’s last ties with the city. And while his name may be emblazoned in still lights across the front of the building, this will be now really much the Carl Icahn show.
The Taj is the second property Icahn now owns in Atlantic City, having also rescued the Tropicana from bankruptcy in 2009.
‘The Taj is certainly one of Atlantic City’s signature properties,’ Icahn told the Associated Press. ‘Although both Atlantic City as well as the Taj have had a couple of years that are tough today marks the turnaround,’ he added.
‘Just a few years ago, Tropicana was at bankruptcy as well as its fate uncertain, but since emerging in 2010, we’ve turned that property around and contains become one of Atlantic City’s few success stories. I am confident we can and will do the exact same for the Taj,’ said Icahn.
State associated with Union
One team that will not be applauding, nonetheless, is the hotel’s casino workers’ union Unite 54, which has yet to achieve a contract agreement with Icahn.
The casino almost closed many times in 2014. Icahn, who had bought the majority of the Taj’s $286 million debt, said which he was willing to just take it over and invest, provided he had been granted several concessions by the city. Among those was the best to scrap health insurance and pension benefits for his casino employees.
As such, union demonstrations have develop into a familiar sight outside the property over the past 18 months.
North Jersey Casino Bill Not Sitting Well with Atlantic City Residents and Businesses
Just say no to North Jersey casino expansion: Senator Jim Whelan, who led the clamor of voices in opposition to North Jersey casinos at a hearing that is legislative Trenton on Monday. (Image: dailykos.com)
Opposition to North Jersey casino expansion collected in Trenton on to denounce lawmakers’ plans to tear up Atlantic City’s longstanding casino monopoly in the state monday.
Atlantic City business people and concerned residents joined up with politicians such as for instance State Senator Jim Whelan (D-Atlantic) in condemning the nj-new Jersey bill at a public hearing of the Senate Budget and Appropriations Committee yesterday.
Among the bill’s criticisms was an extremely real fear that the proposal could destroy the resort town, which includes already lost 25 % of its casinos and with them some 8,000 jobs, over the past couple of years.
Legislators want to allow the creation of two licenses in northern New Jersey, hoping they will attract hordes of gamblers from the New York metropolitan area, which in turn would bolster the state’s faltering casino industry.
Tax Worries
Since this would need an amendment to the state constitution, the matter would go to a public ballot apt to be voted on in November. However the bill will have to be authorized by three-fifths of both chambers in order for this to happen.
Should the bill become law, Atlantic City’s current casino licensees would be offered the opportunity to bid for the North Jersey licenses first. Then be opened up to operators from outside the state if they prove to be uninterested, the field would.
Politicians have actually stated Atlantic City will receive as much as $200 million in compensation from fees regarding the new casinos, but taxation levels have actually yet become determined, which alarms many within the resort city.
Joe Kelly, president of Greater Atlantic City Chamber, said which he didn’t understand how the bill could possibly move forward without these numbers.
‘ We don’t know what kind of revenue will be returned to Atlantic City, we have no idea who it’ll be returned to or how it will work,’ he complained.
He also stated he believed the proposal would result in two more casino closures within the town, and the potential loss of 14,000 more jobs.
Saturated Fat
Senator Whelan warned that the continuing state was using fire by expanding into the north and that the area will not be immune from the situation of saturation.
‘We’re perhaps not going to [see] casinos in north Jersey have a 20-25 monopoly,’ he said year. ‘It are a matter of years before nyc has casinos in Manhattan or into the Bronx. What Atlantic City is experiencing now, north Jersey will experience at that time.’
Another public hearing is due on March 7 in the Assembly, after which the bill will be voted on in both homes.
Florida Gambling Expansion Bill Passes House Committee, Chances of Passage Remain Slim
Florida gambling expansion, possibly: State Rep. Jose Diaz is leading the fight to open Florida’s gaming venues, but the cope with various events, including the Seminole Tribe and pari-mutuel interests, has a way that is long get before being signed into law. (Image: floridapolitics.com)
Florida gambling expansion bill HB 7109 scored a victory that is much-needed Monday, after the state’s home Finance and Tax Committee voted 12-5 in favor of moving the legislation towards the chamber’s floor.
Introduced by Jose Diaz (R-District 116), HB 7109 would overhaul the state’s current legislation by expanding gambling through the entire state. It would also authorize pari-mutuels to offer casino games without continuing to host horse or greyhound racing, legalize daily fantasy sports (DFS), and achieve new terms with all the state’s Seminole Tribe.
However, with a handful of parties all lobbying for their very own self-interests, from lawmakers in Tallahassee to racetracks towards the Indian tribe, the intricate bill that is 122-page anything but a certain thing for passage.
Against All Odds
The prevalent issue facing hawaii of Florida is how to approach the powerful Seminole Tribe and its five gaming facilities. In December, Governor Rick Scott (R) reached a deal with tribal leaders, handing over the exclusive rights to offer craps and roulette in exchange for a guaranteed $3 billion for the Sunshine State’s coffers within the next seven years.
Competing interests from the racing contingent said perhaps not so fast, and also have successfully forced lawmakers into holding up the Scott-Seminole deal.
‘It’s very hard to negotiate a deal when every part threatens them what they want,’ a frustrated Diaz said Monday if you don’t give.
Diaz says their new House bill will require the Seminoles to sign off in the conditions, and time is of the essence. March 11 is the last day of the Florida Legislature’s 2016 session that is regular.
The Seminole compact with Florida expired in 2015, but casinos on reservation land continue to offer gambling and continue to send checks to the state government.
Reaching a deal now would be beneficial to both sides, as being a pact that is new save 3,500 jobs, and in accordance with Seminole Chairman James Billie, create thousands more and create upwards of $10 billion for the state by 2036.
In what is perhaps an olive branch to those opposed to expanded gambling, Diaz’s legislation would require a voter referendum moving forward for any gambling expansion that is future.
Georgia Gambling Not on Its Mind
With Florida’s neighbor towards the north, Georgia wants to take the direct opposite approach to gambling than the Sunshine State. The much more conservative Peach State, Georgia has voted for the Republican nominee that is presidential but four times since 1964.
Georgia presently possesses continuing state lottery, but is free of any tribal, commercial, or racetrack video gaming.
And State House Speaker David Ralston (R) wants to keep it that way. Ralston has got the distinct benefit in Georgia of determining what does and exactly what does not go before your house floor for consideration.
On Friday, the House Rules Commmittee voted to move House Bill 677 to the ground. Authored by State Rep. Ron Stephens (R-District 164), the legislation would authorize the issuance of four gambling that is resort-style.
In line with the Atlanta Journal-Constitution, Ralston encouraged his colleagues to go to church this past weekend and reconsider any plans to vote in favor of legalizing gambling in Georgia. Ralston concluded the week by saying HB 677 finding a vote is something he ‘wouldn’t bet on.’
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