As a condition of keeping Trump Taj Mahal open, Carl
Icahn wants massive concessions from labor and from state and local government,
according to bankruptcy court documents.
But even with $85 million in annual savings from those
moves and a $100 million investment from Icahn, the casino is still likely to
"continue suffering significant operating losses," Icahn's lawyers
said in a letter filed Friday.
The letter from Allan S. Brilliant, of Dechert L.P.'s New
York office, to Trump Entertainment's lead bankruptcy attorney was filed late
Friday in conjunction with a motion by the bankrupt Trump Entertainment Resorts
Inc. to reject its labor contract with Unite Here Local 54, which represents
1,136 workers at the Taj Mahal.
Under the proposal, Icahn would forgive the $292 million
in Trump debt he holds in exchange for all of the company's equity, saving
Trump $37.4 million a year in interest payments. Union members would have to
accept a contract that replaces their traditional pension with a 401(k) plan
and ends their company-paid health insurance.
In addition to the interest savings and $14.6 million in
cuts from Unite Here, the plan depends on $29.8 million in property-tax relief
from Atlantic City and $25 million in aid from the Casino Reinvestment
Development Authority or another government entity.
Source: Philly.com
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