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Taj Mahal AC next to close, maybe......

Discussion in 'Non-Vegas Hotels & Casinos' started by Brooklyn B, Sep 8, 2014.

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  1. Brooklyn B

    Brooklyn B Tourist

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    News reports say they will file for bankruptcy this week. If they can't increase revenue it will be difficult for them to meet their payment obligations. Possible closure this year. That would put close to another 2,800 employees out of work. Real sad if that happens.
    That would put three properties in a row closed on the boardwalk.
     
  2. wizard950

    wizard950 High-Roller

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  3. melbedewy

    melbedewy Low-Roller

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    I would lay money this isn't real. Just another episode in the Taj's 25 years history of putting the screws to creditors.
     
  4. hammie

    hammie VIP Whale

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    Bloomberg reported this is the third bankruptcy for Trump Entertainment Resorts which owns the Trump Taj Mahal and the shuttered Trump Plaza. Actually, I thought it was the fourth chapter 11 filing. In the 1980's, Trump Plaza was the highest grossing casino in AC, it has one of the best locations right in the middle of the boardwalk, adjacent to Boardwalk Hall and at the end of the AC Expressway.

    Carl Ichan is the largest creditor and he also is a majority owner of Tropicana. Somehow, I see him taking control of the Plaza and re-opening it. I think the Taj is so large and run down, it would need a fortune to bring it up to standard, but it would still have a high operating cost basis and tough to turn a profit.

    It's ironic, but before the Taj opened, a Philly based analyst working for a large brokerage wrote a report claiming the $1 billion Taj would require gamblers to lose $1 million a day just to break even. Trump was so upset at this report, he threatened to sue the brokerage so this analyst was fired. Three bankruptcies later, I guess this analyst was right.
     
  5. Brooklyn B

    Brooklyn B Tourist

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    Almost seems like they want AC to fail. They are allowing Monmouth Park Horse Track to begin accepting sports betting as soon as this Sunday. If its not ready they will be in the next 30 days.
    They denied sports betting in AC but allowed at Monmouth, something doesn't add up.

    I agree Hammie, wonder how long it takes Ichan to do anything. It will be interesting to see what is going to happen to these closed properties.
     
  6. lithium78

    lithium78 High-Roller

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    I have to finally admit that the dream that was AC is dead. Five casinos closing in the span of a year leaves the city with only seven casinos and huge empty boarded up buildings along the Boardwalk. I don't know how they can promote AC anymore with this kind of economic devastation. Within a couple years, the NJ state constitution will be amended to allow casinos in North Jersey and that will be that. Nobody will go to AC anymore. What a sad state of affairs. I feel so horrible for all the people who live there who are losing everything.
     
  7. PPtraderal

    PPtraderal Low-Roller

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    Local station NBC 10, (PHILLY) reporting Taj closing on 11/13/2014. I agree with other posters that will be the death bell for AC. Competition will be eliminated, player offers will go down the johnson, Things were not good last winter as some buffets were not open during the week etc. At least there were good offers form CET such as 10X comps on certain days and bonus days. I can really see AC only being open on weekends. I know that sounds ridiculous but the slot joints in PA, NY, Del, and MD, have created oversupply. Five closings in one year does not bode well. But in fairness to the PA. joints are bucking a 55% gross slot tax and in Maryland it is 70%. Makes it tough for the players. As an update, this mornings Philly Inquirer is reporting that Trump is seeking concessions from the unions. Analysts are skeptical considering the debt load. When slots were legalized in Penna. it was to be the answer to the state's fiscal problems. Now it's 2014 and their crying about deficits again. Makes you really wonder. Have a pleasant day all.
     
    Last edited: Sep 10, 2014
  8. TyrC

    TyrC Tourist

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    Could Atlantic City be the next bankrupt city. I've never been and don't see myself going
    but this was a historic city. It would be a shame.
     
  9. donfairplay

    donfairplay Low-Roller

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    VMB's favorite corporate raider of Fontainebleau fame, Carl Icahn, stands to profit from the closing of Taj Mahal and Trump Plaza.

    These guys make more money off things failing, than things succeeding.

    I'm also getting irked by the number of card game references in these articles, it's irksome, it's irky irky irky.


    http://blogs.wsj.com/bankruptcy/2014/09/17/carl-icahn-rakes-in-his-winnings-in-trump-casino-bankruptcy/

    12:58 pm ET
    Sep 17, 2014
    Carl Icahn Rakes in His Winnings in Trump Casino Bankruptcy

    By PEG BRICKLEY


    Carl Icahn holds all the cards at the Trump casinos in Atlantic City, and the question is, will he hold ‘em or will he fold ‘em?

    As a secured lender who’s owed $285 million plus interest, he’s in a prime position in the Trump Entertainment Resorts Inc. Chapter 11 case, which began Tuesday and is speeding toward a possible shutdown of the two casinos on the Atlantic City Boardwalk still bearing the name of rival billionaire Donald J. Trump.

    Trump Plaza closed Tuesday, but there’s a chance Trump Taj Mahal, the larger and more successful of the two, can be saved. Court papers pin that hope on concessions from Unite Here Local 54, the union that represents thousands of Atlantic City casino workers.

    Union chief Bob McDevitt said the Taj Mahal negotiating committee looks forward to talking to the new owners, but voted a unanimous “no” to cuts asked by current management.

    Mr. Icahn isn’t saying, but Boardwalk observers and industry analysts believe there’s a chance Trump Taj Majal is worth saving. Minus the need to pay $38 million in annual debt service, minus the corporate overhead of Trump Entertainment Resorts Inc. and without the drag of ailing Atlantic City sister Trump Plaza, the Taj Mahal could turn a profit.

    Trump Entertainment attorney Kristopher Hansen pointed out that there’s also the matter of the secured debt to be resolved, even if the union does an about-face. Carrying costs on the debt are about $38 million annually. That’s money that has been going into Mr. Icahn’s pocket, until recently, when distress on the Boardwalk mounted and Trump Entertainment found itself without more extra stuff to sell.

    The company has a couple months of cash left, no bankruptcy loan, and it’s in a gambling market that’s so sad even the glitzy new Revel went begging for a buyer. Built at a cost of $2 billion, Revel’s tower of glass and steel is going to auction with a $90 million starting offer.

    In the Trump Entertainment case, no one’s even talking about a sale. Mr. Icahn can use Chapter 11 to get out from under a lot of obligations, then seize what’s left, including the Trump Taj Mahal, if he wants it.

    His companies also control Tropicana Casino & Resort Atlantic City, a competing Boardwalk property. In the last Trump Entertainment Chapter 11 case, that was used against him by opponents who predicted he’d shut the Trump casinos to funnel business to the Tropicana.

    In that Chapter 11 proceeding, from 2009 and 2010, Mr. Icahn “lost” the battle for control of the casinos to a coalition led by Donald J. Trump and Avenue Capital’s Marc Lasry, who likes to play poker. Trump Entertainment’s owners also include Contrarian Capital Management, Kings Road Holdings and other investment funds. Avenue Capital has not responded to requests to comment on Trump Entertainment.

    Mr. Icahn bought the Trump Entertainment debt at a discount during the previous Chapter 11 proceeding, when banker Andrew Beal came to a parting of the ways with Mr. Trump. Mr. Icahn quickly recouped $125 million of his investment from a capital-raising effort by the bondholders. Court records indicate that Trump Entertainment paid down tens of millions of dollars of the loan principal during the years between bankruptcies, in spite of the gambling company’s growing distress.
     
  10. broncofn

    broncofn VIP Whale

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  11. pphold

    pphold pp Park Place Degenerate

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    yea hate to see the Taj Mahal close but AC is going down the tubes.
     
  12. sindustry

    sindustry VIP Whale

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    Damn...Taj is iconic AC. I used to go there for poker when I lived on the east coast. Going to have to break out the old Rounders DVD now.
     
  13. undathesea

    undathesea Grandissimo

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    I was in that poker room all the time. I remember once a guy (someone said was homeless) was playing at a table and pissed his pants, the chair, and the floor around him because he didn't want to get up and go to the bathroom.

    That place was doomed when the Borgata opened. Then Caesars Palace redid their poker room and we never went back.

    Ah... the good ole days.
     
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