Billionaire investor steps in to save Atlantic City casino
{{#rendered}} {{/rendered}}Oct. 24, 2014: Marita Luna (C) and Miriam Ramos (2nd R) joins other union members from UNITE HERE Local 54 as they rally outside the Trump Taj Mahal Casino in Atlantic City, (Reuters)
At the brink of closure, Carl Icahn stepped in to save Atlantic City’s second-biggest casino, the Trump Taj Mahal.
Ready to close its doors, Icahn brokered a deal with the union representing nearly 1,100 casino workers to restore all work rules after not budging on a deal earlier in negotiations, the New York Post reports.
The union got what it wanted, a source told the paper. The deal will save 3,000 jobs in the process.
{{#rendered}} {{/rendered}}Icahn had originally been fighting to outsource some services in the casino, including non-union restaurant workers.
The billionaire investor, who owns $292 million in the casino’s bank loans does get a sweetener in the deal. New Jersey state Senate President Stephen Sweeney is expected to propose legislation that will give the Taj Mahal about $150 million in tax breaks, according to the paper.
Sweeney was not going to support the tax breaks unless Icahn reached a deal with the union.
{{#rendered}} {{/rendered}}Icahn is expected to turn in his debt along with $100 million in cash for ownership of the casino, a source told the Post.
Trump Entertainment closed down Trump Plaza in September. Icahn is expected to repurpose the casino into a Bass Pro Shops.