Trump Entertainment’s Fight with Union Heads to Appeals Court
Source: WSJ
By PEG BRICKLEY
Creditors are voting on a bailout plan for the troubled Trump Taj Mahal, but the crucial ballots will be cast by federal judges in Philadelphia, who will decide the fate of the casino’s union contracts.
Arguments are scheduled today on a challenge to a bankruptcy judge’s order terminating the contract. If that order is overturned, secured lender Carl Icahn has the right to walk away from his commitment to keep the Trump Taj Mahal running on the Atlantic City boardwalk.
Mr. Icahn originally offered $100 million in new money for Trump Entertainment Resorts, which owns the Taj Mahal. The offer was conditioned on landing $175 million in aid from the state of New Jersey and Atlantic City and on wringing $14.5 million worth of concessions from the workforce.
The government funds didn’t come through, but a bankruptcy judge terminated the union contracts, ending health care and pension rights as well as paid breaks and other contract-protected benefits. For months, the fate of the Trump Taj Mahal hung in the balance, as Mr. Icahn and the union faced off.
FULL story at link.
Union members picket outside the Trump Taj Mahal casino in Atlantic City in October. PHOTO: ASSOCIATED PRESS
Read more: http://www.wsj.com/articles/trump-entertainments-fight-with-union-heads-to-appeals-court-1425478820
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