A deal brokered between billionaire investor Carl Icahn and Atlantic City’s casino workers union that would save the financially troubled Trump Taj Mahal has fallen through, reports NJBIZ via Unite Here 54’s president, Bob McDevitt.
From the story:
“On Wednesday night, a New York Post report indicated that Icahn, who owns all of the $292 million in Taj bank loans, had agreed to meet the union’s demands on work rules, prompting hope that the 24-year-old casino’s 3,000 or so jobs would be saved.
The newspaper reported that a new agreement could have been executed as early as Thursday morning. However, McDevitt issued a statement shortly after 1 p.m. Thursday advising that Icahn had backed out of the deal.
“We thought that we had come to an agreement with all parties that would resolve all of the issues with the Taj Mahal,” McDevitt said in the statement. “We signed it, and the Trump CEO signed as well. At noon today, we were told that Carl Icahn had gone back on his commitment and would not enter into the agreement. This is what we have been dealing with for some time now at this property. We are disappointed that Mr. Icahn’s whims are going to add to the feelings of uncertainty and instability that the workers have had to live with and have to endure during this holiday season and beyond.”
The deal, which was reported to be brokered by top Gov. Chris Christie adviser Jon Hanson, called for Icahn exchanging his debt plus $100 million in cash for ownership of the casino.”
According to another Associated Press report, Icahn said he would keep the Taj open indefinitely, despite having no deal in place.
An Atlantic County source told PolitickerNJ this afternoon that Icahn allegedly called off the deal before it was finalized after McDevitt himself leaked the details to the Post.