Add a second casino in Atlantic City for Carl Icahn, the owner of Tropicana Entertainment that owns the Boardwalk casino of the same name. Trump Taj Mahal emerged from bankruptcy last week after Icahn offered to exchange the money owned to him via bonds—more than 0 million—for 100 percent of the equity in the property.
The Taj went bankrupt in 2014, almost closing at the same time three other Atlantic City casinos shut their doors that fall. But Icahn has propped up the casino since then. He was waiting to take over until a court made a decision on a suit brought by UNITE HERE’s Local 54 over cancellation of health benefits for union members. The court ruled in the casino’s favor over a month ago.
The move means that the last vestige of ownership by presidential candidate Donald Trump is over. Trump owned 5 percent of the Taj prior to the bankruptcy, with an option to buy another 5 percent. Trump’s name will remain on the building, however, in a licensing deal.
Icahn says he hopes to do with the Taj Mahal what he did with the Tropicana.
“The Taj is one of Atlantic City’s signature properties,” Icahn told the AP. “Although both Atlantic City and the Taj have had a few tough years, today marks the beginning of the turnaround,” he said. “Just a few years ago Tropicana was in bankruptcy and its fate uncertain, but since emerging in 2010, we have turned that property around and it has become one of Atlantic City’s few success stories. I am confident we can and will do the same for the Taj.”
Trump Entertainment Chief Gaming Executive Mike Mellon, said, “The company and its employees are excited to have weathered through these tough times and look forward to the return of Trump Taj Mahal to its prominent position in the Atlantic City market.”
Icahn has promised to invest at least $150 million to revitalize the Taj.
