Carl Icahn looks to be hedging his bets on Atlantic City's Trump Taj Mahal.
The billionaire investor is mulling providing a bridge loan to the owner of the Taj to keep the struggling casino from shutting down as early as next month, The Post has learned.
The potential debtor-in-possession financing would buy Icahn and Trump Entertainment Resorts time to see if they prevail in their bankruptcy battle with union workers before he pushes ahead with a $100 million rescue package, sources said.
Icahn needs to make a decision by the end of the month, which is when the company expects to run out of cash, according to sources.
Although Icahn has said he won't back out of a deal he made with Trump Entertainment to acquire the Taj and pump $100 million into it, he admits he rues the day the company called him about the rescue.
Icahn is already the casino's biggest lender after sinking $286 million into the boardwalk property over the years.
Trump Entertainment won bankruptcy court approval last month to scrap union health-care and pension benefits — a move that it said was necessary if the casino had any shot at surviving and keeping 3,000 jobs.
The union, which represents about 1,100 workers, is appealing the Delaware bankruptcy judge's decision to terminate their contracts.
The appeal is not expected to be heard for another three months. Trump Entertainment can cut the pay now while the ruling is appealed.
Trump Entertainment initially threatened to close the Taj on Nov. 13 if it didn't get its way with the unions. The casino now says it will close on or shortly after Dec. 1 if the state and Icahn don't come through with financial assistance.
Atlantic City's second largest casino needs to tell the New Jersey Division of Gaming Enforcement if it intends to shut the casino within two weeks, sources said.
The Taj, which is losing around $8 million a month, has enough money to operate through the end of year at its current cash burn but not much beyond that, a source said.
Atlantic City has had nothing but bad news this year. It started 2014 with 12 casinos — but now just eight remain.
New Jersey State Senate President Stephen Sweeney, who controls the state's budget, won't talk with Icahn and Trump Entertainment about tax incentives unless they reach a deal with the union first, a source said.
"If Sweeney doesn't provide assistance, there is no state aid," the source said.
Icahn declined comment, and Sweeney did not return calls.
Anda sedang membaca artikel tentang
Carl Icahn mulls casino loan
Dengan url
http://bahayaprostat.blogspot.com/2014/11/carl-icahn-mulls-casino-loan.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Carl Icahn mulls casino loan
namun jangan lupa untuk meletakkan link
sebagai sumbernya
0 komentar:
Posting Komentar