By filing Chapter 11 bankruptcy, EnCap prevented the agreement from terminating. Ultimately, the courts will decide the enforcibility of the redevelopment agreement. "Litigation will continue for a very long time," said Cohen.

Michael Cohen, Trump’s executive Vice President in the Meadowlands, has resigned as manager of EnCap to avoid a conflict of interest as his firm pursues a buyout of the bankrupt company.

Currently, the Trump Organization is contemplating a plan to raise capital, or front its own money, to bail the company out of bankruptcy. Trump would have to pay off EnCap’s debts before it could take over EnCap’s role in its agreement to cap landfills in the meadows and build high-rise condominiums, golf courses and a hotel on top.

The NJMC’s plan was to terminate the agreement so it could collect a $150 million surety bond, which acts like an insurance policy to close the landfills should EnCap default. EnCap did default, but Cohen said the insurance company, AIG, would contest supplying the bond to the Meadowlands Commission. Collecting the funds from AIG will be very difficult for NJMC, according to Cohen.