Carl Icahn’s companies officially own Trump Taj Mahal.
The bankruptcy reorganization of Trump Entertainment Resorts was consummated Friday, according to a court filing.
Companies controlled by the Wall Street mogul, which were Taj’s main lenders, now helm the Boardwalk property.
Trump Entertainment Resorts Inc. and its subsidiaries emerged from Chapter 11 bankruptcy. The reorganized company will be a wholly owned subsidiary of Icahn Enterprises, the companies said in a statement Friday evening.
“The company and its employees are excited to have weathered through these tough times and look forward to the return of Trump Taj Mahal to its prominent position in the Atlantic City market,” Mike Mellon, the Taj’s chief gaming executive, said in a statement.
Icahn also owns Tropicana Atlantic City.
“Just a few years ago, Tropicana was in bankruptcy and its fate uncertain, but since emerging in 2010, we have turned that property around and it has become one of Atlantic City’s few success stories,” Icahn said in a statement. “I am confident we can do the same for the Taj.”
The Taj had been in bankruptcy since September 2014, and its gambling revenue has struggled, down 16.5 percent last year.
The Taj reported a stronger January, as revenue increased $275,000, or 3 percent from January 2015, according to the latest monthly report from the state Division of Gaming Enforcement.
Icahn has spent tens of millions of dollars propping up the Taj during its bankruptcy reorganization.
He had previously said his companies would not take over the Taj Mahal until a case over health and pension benefits involving UNITE-HERE Local 54 is resolved.
In January, a federal appeals court rejected the union’s challenge of a cost-cutting campaign executed by Taj operator Trump Entertainment. The casino-workers union has until mid-April to ask the U.S. Supreme Court to review the case.
Union President Bob McDevitt declined comment Friday evening, saying he wanted to review the ruling.
Despite the ongoing case, the ruling Friday makes the Taj’s future a little more clear.
“This is great news for the Atlantic City and Atlantic County economy, and I am ecstatic that thousands of employees of the Taj will keep their job and continue to work,” said former Trump Entertainment Resorts Chief Financial Officer David Hughes, who is now CFO of Shore Medical Center in Somers Point. “At the end of the day, there was only one person who was willing to put up the money to keep the doors of the Taj open. With the new ownership, the Taj is well positioned for future success.”
Icahn Enterprises includes business segments from gaming and food packaging to home fashion and automotive. The corporation in February closed on the purchase of Philadelphia-based Pep Boys for about $1 billion.
Staff Writer Reuben Kramer contributed to this report.