Donald Trump can continue to seek to remove his name from the Trump Taj Mahal in Atlantic City as a bankruptcy court judge lifted a stay on his lawsuit against the casino’s owner, Trump Entertainment.
Trump only retains about 10 percent interest in Trump Entertainment and he and daughter Ivanka sued to have their name removed from the bankrupt casino. The Trump’s charge the company has allowed the property to decline and it no longer lives up to the standards of the Trump brand.
Judge Kevin Gross lifted a stay that protected Trump Entertainment from hostile action while it is in bankruptcy and had prevented the Trumps from proceeding with the lawsuit in state court. Gross ruled that Trump Entertainment did not have the right to assign the trademark license agreement to a new entity unless the Trumps consent.
Trump Entertainment hopes to transfer ownership of the two casinos to billionaire Carl Icahn through its bankruptcy plan. Icahn holds the majority of the company’s debt and would swap it for ownership of the properties.
Trump Entertainment has already removed most of the signage with Trump’s name for the closed Trump Plaza casino, but has argued that it can’t deal with the pressure of Trump’s suit and a major brand change as it tries to steer the Taj Mahal through a difficult bankruptcy. The casino has been on the brink of closing several times, but so far has stayed open.
The Trump’s lawsuit, however, is back in play.
“Unfortunately, Trump Entertainment Resorts has allowed the Taj to fall into an utter state of disrepair in violation of their licensing agreement,” Trump attorney Alan Garten told the Associated Press. “We think it’s a good ruling.”
“The value of the brand is at an all-time high right now,” Garten, also told the Wall Street Journal. “That’s why there’s been such a knockdown, drag-out fight.”
Trump Entertainment has not commented.
