Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Trump Entertainment seeks to stop pension payments
Author: Joel R. Glucksman
Date: October 2, 2014
Key Contacts
Back
The much beleaguered Trump Entertainment – a company formerly associated with celebrity millionaire Donald Trump – will go before a bankruptcy judge Oct. 2 in an attempt to get out of its pension obligations, according to The Wall Street Journal.
Trump Entertainment attorney Kris Hansen told Judge Kevin Gross that escaping the pension payments that it is obligated to make is essential to the company’s survival, the news source reported. Hansen went on to compare the pension fund to “a black hole.” Gross agreed to hear the pension question in light of the “immediate and irreparable” harm to the gambling company.
Union and pension fund attorneys argued that the hearing should not occur because halting pension payments is just one of the things that needs to happen for Trump Entertainment to exit bankruptcy for the fifth time, according to the Journal. The company would also need to receive tax relief from Atlantic City, money for capital improvements from the state of New Jersey and debt relief from Carl Icahn, a secured lender. A failure of any of these events to occur would almost certainly cause the company to go under, Kathy Krieger, lawyer for a union that represents 1,200 Trump Taj Majal workers, told the news source.
Already, Atlantic City Mayor Don Guardian has publicly rejected the company’s call for tax relief, the Journal reported, which signals poorly for the former gambling empire’s future. Union lawyer William Josem said that many casino workers already struggle to put food on the table with the pay packages they are receiving, and that further cuts could lead some to lose their homes. Nevertheless, attorney for Mr. Icahn’s funds Allan Brilliant told the news source that there would be no debt relief should the pension issue not come off smoothly.
Trump Entertainment has been struggling for years, causing Donald Trump to file a lawsuit recently demanding that his name be taken off of the Trump Taj Majal and the recently closed Trump Plaza, The Associated Press reported.
“I want it off both of them,” Trump said, according to the news source. “I’ve been away from Atlantic City for many years. People think we operate [the company], and we don’t. It’s not us. It’s not me.”
Atlantic City is taking hit check out some of my previous posts on bankruptcy of the city’s most popular casinos:
- Taj Mahal Casino of Atlantic City May File For Bankruptcy
- Atlantic City’s Revel To File For Bankruptcy Again
- Atlantic Club Casino Seeks Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.