$20M Not Enough for Casino - NBC 10 Philadelphia

$20M Not Enough for Casino

Carl Icahn: Trump Plaza price is too low



    $20M Not Enough for Casino

    The proposed sale price for one of Atlantic City’s struggling gambling halls is too low, according to a top lender.

    Investor Carl Icahn says he won't approve the proposed $20 million sale of Atlantic City's Trump Plaza Hotel and Casino.

    As the senior lender, Icahn tells The Press of Atlantic City the price is too low. Icahn declined to say what he thinks the deal is worth.

    “It’s as black and white as it can be: They can’t sell that casino without our consent. It’s not going for anywhere close to $20 million,” Icahn told the paper.

    Icahn says he holds the mortgage for both Trump Plaza and Trump Taj Mahal Casino Resort. His office says the mortgage totals $289 million.

    Icahn's opposition is blocking the California-based Meruelo Group from completing the purchase of Trump Plaza that it announced in February. It would be the lowest sale price ever for an Atlantic City casino.

    In a statement issued late Friday, the Meruelo Group said the sale cannot currently be completed as planned because Trump Entertainment has been unable to obtain the release of a mortgage held by a “senior secured lender.”

    “We are disappointed to announce that our acquisition of the Trump Plaza cannot be completed as planned at this time because Trump Entertainment has been unable to obtain a release of the mortgage held by their senior secured lender,” the Meruelo Group said in a statement, according to The Press of Atlantic City.

    Originally the Meruelo Group said they hoped to close the deal by May 31.

    Back in March, WARN notices were issued for 1,434 Plaza employees but both the union and Meruelo said it was more a standard procedure than a threat of job loss. It's unclear if this hold up in the sale could put jobs in jeopardy.


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