The New York Post is reporting that the Trump Taj Mahal is
latest Atlantic City casino possibly headed for bankruptcy. The 24-year-old
casino had once been the jewel of Atlantic City but has fallen on hard times
with the emergence of the Borgata and new casinos in Pennsylvania and other
surrounding states driving customers away.
The Post (citing an anonymous source) reports that the Taj
Mahal "has recently broken some of its loan covenants and without a quick
deal with its creditors could be headed for a Chapter 11 reorganization within
days."
There was hope
around the negotiation table that Carl Icahn, who owns much of the Trump
Entertainment debt, would agree to convert that debt into equity and keep the
2,248-room hotel-casino out of Chapter 11.
Donald Trump has been vocal about his disgust with the
current Atlantic City market, and he even sued to have his name removed from
the two remaining casinos that bear his name.
The news comes on the heels of the Revel Casino Hotel and
Showboat closing earlier this week. Trump Plaza is next, with a closure date of
Sept. 16.
Source: Philadelphia
Business Journal
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