Last Minute Reprieve for Taj Mahal as Icahn Ready to Make Union Concessions
Carl Icahn, the Taj Mahal’s largest debtholder, has decided to make some concessions to unions after all.
Icahn had vowed not to do so and suggested that the Taj Mahal’s closure would be inevitable.
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The billionaire investor, who owns $286 million of the Taj’s debt, insisted the casino cannot survive without eliminating the costly pension and health care obligations to some 3000 employees.
On Monday (November 24) his tune appeared to change.
According to the New York Post, Icahn has offered to restore health-care benefits for 1,100 workers if the union drops its appeal of a court decision that terminated its labor contract and he has also said he might be willing to give union workers some pension benefits.
Trump Entertainment and Resort has agreed to hand over Atlantic City’s second biggest gambling joint to Icahn in exchange for him canceling $286 million of the debt he owns. He would also inject $100 million into the casino.
The closing date for the casino has been set at December 12 unless all parties can finalize an agreement. 1100 employees stand to lose their jobs.
- Aaron Goldstein, Gambling911.com
