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No Deal! Last-Ditch Plan to Save AC's Taj Falls Apart But Casino Won't Close

A deal to save a struggling Atlantic City casino fell apart Thursday but a billionaire investor is promising to give the money needed to keep the resort open for now.

After months of squabbling, the owners of the Trump Taj Mahal and casino workers union UNITE-HERE! Local 54 appeared close Thursday morning to a deal that would prevent the boardwalk resort from closing.

A high-level source involved in the negotiations told NBC10 Jersey Shore Bureau reporter Ted Greenberg that the two sides had reached a verbal understanding Wednesday night, but stressed that no documents were signed, so no official agreement was in place as of late Thursday morning.

Early Thursday afternoon, Local 54 president Bob McDevitt said that the union and casino had struck a deal but hit a snag when billionaire investor Carl Icahn didn't sign off on the deal. Icahn holds the debt of the bankrupt company and stands to gain control of the Taj.

"We signed it, and the Trump CEO signed as well," said McDevitt. "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."

A key issue has been an appeal of a court order canceling health and pension benefits to union employees.

With 3,000 jobs on the line, Trump Entertainment Resorts CEO Robert Griffin sent a letter Tuesday to Icahn saying that he was the last hope to save the doomed casino.

McDevitt said that the union was "disappointed" that Icahn's "whims" left workers with uncertain futures around the holidays.

In the letter responding to Griffin, Icahn said the Taj loses $10 million a month. Despite that he promised another $20 million to keep the Taj operating through bankruptcy proceedings.

The casino could have closed on Saturday morning leaving another empty resort along the famed Atlantic City Boardwalk after the Showboat, Revel and Atlantic Club all closed in the last year.

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