Judge approves Trump Taj Mahal to continue operations

Of particular importance was the judge's approval of a plan allowing Trump to use its nearly US$ 30 million in cash to fund operations for the next nine weeks, under an agreement with the Icahn entities. "The runway here is very short," Trump's lead attorney, Kristopher M. Hansen of Stroock & Stroock & Lavan in New York City, told Gross.

Trump Entertainment is trying to get through bankruptcy without a special loan called debtor-in-possession financing. Those loans typically are first in line to be repaid in a bankruptcy settlement, but Icahn is holding onto that position in this case.

An Icahn representative, Allan S. Brilliant of Dechert's New York office, did not speak to the judge during the hearing. Hansen said Trump would continue to negotiate with Icahn and seek concessions on labor costs, but warned that without relief, Taj Mahal would have to close Nov. 13. "It's just an unfortunate reality," Hansen said.

Trump Entertainment already plans to close Trump Plaza, which employs about 1,000, Tuesday.

Hansen said the Taj Mahal has seen a precipitous decline in business since Revel and Showboat closed over Labor Day weekend because fewer Atlantic City visitors are coming to that end of the Boardwalk.

Taj Mahal employs nearly 3,000, including part-timers. It would be the fifth Atlantic City casino to close this year. The Atlantic Club closed in January.