New Jersey’s Atlantic City, once a thriving haven for gamblers and casinos, appears to be continuing its downward trend.
The Trump Taj Mahal, a 2,248-room, 24-year-old hotel-casino situated on Atlantic City’s boardwalk, may file for protection under Chapter 11 of the bankruptcy law in the next few days, according to the New York Post. The casino has broken some of its loan agreements and has failed to reach an out-of-court solution with its creditors, sources said.
Some of those involved with the negotiations had hoped that Carl Icahn, who owns a significant part of the Taj Mahal’s debt, would agree to a debt-for-equity deal, the Post reported. This would have likely been enough to keep the hotel-casino out of Chapter 11. This appears not to be happening.
Though the casino – and operating company Trump Entertainment Resorts – bear Donald Trump’s name, the mogul retains less than a 10 percent stake, according to the news source. Marc Lasry’s Avenue Capital led a group of hedge funds that bought the company out of a previous bankruptcy in 2009.
Angry about the state of disrepair into which the Trump Plaza and the Trump Taj Mahal have fallen, Trump recently filed a lawsuit against the company, alleging that it tarnishes his personal brand and confuses customers, according to The Associated Press.
“Since Mr. Trump left Atlantic City many years ago, the license entities have allowed the casino properties to fall into an utter state of disrepair and have otherwise failed to operate and manage the casino properties in accordance with the high standards of quality and luxury required under the license agreement,” Trump wrote in his lawsuit, according to the news source. “The Trump name … has become synonymous with the highest levels of quality, luxury, prestige and success.”
It remains to be seen if bankruptcy proceedings for the Trump Taj Mahal will be any more palatable to The Donald.
Taj Mahal isn’t the only casino in Atlantic City to face bankruptcy, recently I wrote an article discussing the downturn of the $2.2 billion casino, Revel:
Atlantic City’s Revel To File For Bankruptcy Again
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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 […]
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 […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
