The Trump Taj Mahal is scheduled to shut down by early December and their parent company could run out of money shortly thereafter. The defacto owner, Carl Icahn, could be considering a loan to help keep the casino open but may also face a tax bill challenge from Atlantic City.
According to recent reports, Icahn is considering whether to take out a bridge loan to keep the Trump Taj Mahal open past early December. The loan would give the casino needed time to pursue options to keep the doors open permanently. Meanwhile, Atlantic City is trying to recoup $22 million in 2014 property taxes from Trump Entertainment.
Icahn Considering Loan to Buy Time for Taj
According to the New York Post, the loan is being considered in order to give Icahn and Trump Entertainment extra time to prevail against union workers. Last month, the Trump Taj was given the OK to back out of their union contract and stop both pension and health care payments to workers. The union has since appealed, but the appeal may not be heard for three months, meaning that without some help the Taj will close before the union gets their day in court.
Icahn also recently issued a letter to the union, describing the Taj as a patient on their deathbed and asking the union to drop their appeal of last month’s ruling. The union, meanwhile, is blaming Icahn for the Taj’s current financial problems, saying he bled the company dry in recent years.
Atlantic City to Pursue $22 Million in Taxes from Trump Entertainment
Just a few short days after receiving approval to pursue property taxes from the defunct Revel casino, Atlantic City will try to win the right to get $22 million in unpaid real estate taxes from bankrupt Trump Entertainment for the Trump Taj and Trump Plaza, the Press of Atlantic City reported.
Last week, a Delaware bankruptcy judge removed the shield of bankruptcy protection from Revel to allow Atlantic City to collect around $32 million in taxes. If the city is successful in doing the same, the city will add the $22 million to a tax certificate sale on December 11 where they will likely auction Revel’s tax bill.
The winner of the tax certificate will become the tax debt holder for the casinos and would be responsible for collecting the debt. Should the certificate remain unpaid after two years, the investor can then foreclose on the properties.