The Trump Taj Mahal in Atlantic City is in serious danger of closing, but billionaire Carl Icahn believes it’s worth taking a “bad investment” in order to save the thousands of jobs.
In a related report by The Inquisitr, Donald Trump may not be directly associated with the Trump Taj Mahal any more, but Trump wants his name removed off of the casino now owned by the company called Trump Entertainment Resorts. The Trumps argue that the company allowed Trump Taj Mahal to deteriorate, which damages their brand.
“I think everyone knows that I’m gone. Atlantic City was a place that I really loved; you know, I did it for a long time in Atlantic City. But a lot of people say when I left, that’s when it went bad. And in one way, I’m honored by that statement, but in another way, I feel badly about Atlantic City.”
Icahn may agree that circumstances have worsened in Atlantic City, but he wrote a letter to the Taj Mahal’s union president, Bob McDevitt, saying he would be willing to invest in order to prevent the Taj Mahal closing on the scheduled date of December 21, 2014.
“Bob, as you know, this is a bad investment for me at this time, evidenced by the fact that no one else is willing to invest even a dime,” Icahn wrote according to the New Jersey Herald. “I’m amazed that the union is unwilling to agree to a company proposal that restores two years of health care, provides a new pension, keeps the Taj open and saves 3,000 jobs — basically ALL of the things that you and Senator Sweeney have asked for — if you just withdraw the appeal and give us labor peace.”
The Trump Taj Mahal is expected to run out of operating cash by the middle of January of 2015. As part of the plan to save the casino, Trump Entertainment Resorts asked a Delaware bankruptcy court to approve $5 million in financing from Icahn to keep it afloat during its Chapter 11 case. Icahn would also cancel $286 million in debt he holds from the company and he would invest an additional $100 million assuming significant tax breaks are obtained from state and local governments.
“As you know, it’s impossible for me to invest in the Taj Mahal while the appeal is pending, and even if you win the appeal, all it will do is ensure that the Taj Mahal closes,” Icahn wrote to McDevitt. “Do you really want your legacy, and that of Local 54, to be defined by closing the Taj and putting 3,000 people out of work unnecessarily? There is no time left to negotiate, and that is why the company and I have put everything on the table.”
If Carl Icahn purchases the Trump Taj Mahal it would expand his investments into Atlantic City. Icahn already owns Tropicana Casino and Resort, which he also bought out of bankruptcy.