Billionaire investor and Board Chairman of Icahn Enterprises LP (NASDAQ:IEP), Carl Icahn, had stated that he was contacted by Trump Management to fund its Trump Taj Mahal in an attempt to save the casino from absolute financial ruin. Financial journalist, Mia Saini, reported on this development on Bloomberg’s Taking Stock.
Carl Icahn, the majority shareholder of Icahn Enterprises LP (NASDAQ:IEP), tweeted saying that the management of Trump contacted him about two weeks ago for providing funds to save the heavily distressed Trump Taj Mahal casino. The management also stated that the casino was under huge debt and was losing over $7 million a month without counting interest payments. The Trump management was forced to contact Icahn as they were unable to find any other investor who was interested in coughing up such a large sum of money.
“[Trump management] asked, if they could get concessions from the union, city and state, [would] Carl Icahn then be willing to invest $100 million,” reported Saini. The concessions included approximately 35% reduction in total compensation of Taj workers and relief from property tax. Atlantic City Mayor, Don Guardian, rejected the request for tax relief yesterday and the President of the union, Bod McDevitt, did not sound likely to consent to the deal. The Trump Taj Mahal would close in a couple of months if it does not receive tax relief and secure the required capital from Icahn Enterprises LP (NASDAQ:IEP)’s Carl Icahn, who controls $268 million secured debt in its parent company, Trump Entertainment.
“[Carl Icahn] would be willing to pony up $100 million in cash to help out this hotel, but […] it does not seem like that is going to be enough to help this part of the world that has been really struck by the fact that gambling revenues have declined,” concluded Saini.
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