Joel R. Glucksman
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Trump Entertainment Loses Anti-Pensioner Bid
Author: Joel R. Glucksman
Date: October 9, 2014
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Trump Entertainment, the one-time casino enterprise formerly-owned by the millionaire who begrudgingly shares its name, encountered yet another setback in court Oct. 3.
According to The Wall Street Journal, the company lost a bid to immediately stop payments into a pension fund for its 1,135 unionized employees at the Trump Taj Mahal. Trump Entertainment sought emergency relief from these payments, suggesting that they posed a threat to its ability to restructure. The casino company – which now owns only the Trump Taj Mahal – filed for protection under Chapter 11 of the bankruptcy law in September.
Trump Entertainment’s argument was rejected by Judge Kevin Gross, who noted that a debate regarding the company’s contract with Unite Here Local 54 would occur on Oct. 14 and that pension funding would be included in talks then, the news source reported. Until that point, the organizations are required to continue negotiating.
Gross also said that the U.S. Bankruptcy Code prevented him from allowing Trump to permanently reject a portion of its collective bargaining agreement with Unite Here Local 54, according to Reuters. However, while this decision provides some temporary relief, it appears that it would be possible for him to allow Trump Entertainment to reject the agreement as a whole, depriving employees of health benefits as well as pension payments. For its side, Trump Entertainment has said that ending pension payments would save it about $3.7 million annually.
On Oct. 2, a pension fund lawyer said that Trump Entertainment was using this trip through bankruptcy to clean up its business before delivering it to Carl Icahn, the company’s main creditor, the news source reported.
As a tax attorney at Scarinci Hollenbeck LCC, a general practice law firm in the New York/New Jersey metropolitan area, I’ve followed Trump Entertainment’s bouts with bankruptcy, check out my previous posts here:
- Trump Entertainment Seeks To Stop Pension Payments
- Taj Mahal Casino of Atlantic City May File For Bankruptcy
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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