Tuesday, March 26, 2013
Atlantic City's Revel Casino files for Bankruptcy
A little less than a year after opening, the $2.4 billion Revel casino filed for bankruptcy yesterday in New Jersey. Under the Chapter 11, debt-for-equity bankruptcy deal, 82 percent of Revel's $1.5 billion in debt will be wiped out, leaving an easier to manage $272 million debt.
Its construction was at a point of no return when the economy began to slump.
Some people believe the casino made a mistake in trying to attract leisure travelers and conventions,while ignoring casual day gamblers. Revel is also a non-smoking casino, which probably drove some people to other resorts and casinos.
The majority of lenders have already approved of the bankruptcy package, and the company is hoping to emerge from bankruptcy by the beginning of the summer vacationing season. Revel plans to continue operations as normal throughout the restructuring.
The massive 1,800-room hotel has more than 2,400 slot machines and 100 table games in its large casino. Revel also has restaurants, nightclubs and movie theaters.
If you think bankruptcy may be the right option for you, please contact an experienced bankruptcy attorney using our directory.