ATLANTIC CITY, NJ—Trump Entertainment and Atlantic City reached an agreement on Tuesday that allows the city to recoup $22 million in unpaid taxes on the Taj Mahal and Trump Plaza properties. The deal also allows Trump Entertainment to pursue legal claims to lower the tax debt.
The deal between Trump Entertainment and the city was approved by a federal bankruptcy court judge, according to the Press of Atlantic City. The agreement allows Atlantic City to sell $22 million in tax certificates in connection with the Taj Mahal and Trump Plaza debt. It also keeps in place Trump Entertainment's appeal on the city tax debt amount.
In the ongoing saga to keep the Taj Mahal open, Trump Entertainment has recently offered to restore some health and pension benefits in order to secure some union concessions. Billionaire investor and holder of the majority of Taj Mahal debt Carl Icahn, in a letter to UNITE HERE Local 54 president Bob McDevitt, characterized his possible takeover of the casino resort as a “bad investment.” He states in the letter, “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.”
Trump Entertainment has said that without union concessions and incentives from the state and Atlantic City, the Taj Mahal will close on Dec. 12. See story in the Press of Atlantic City.
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