New Casino Bankruptcy: Revel Casino In Atlantic City Files For Chapter 11
By IBTimes Staff Reporter | February 21, 2013 3:32 AM EST
New Jersey’s newest casino, the ten-month-old, $2.4 billion Revel Atlantic City, announced on Tuesday that it is preparing to file for bankruptcy.
In a statement, Revel AC Inc. revealed that it currently owes about $1.5 billion in debt, but expects that those debts will be reduced by over $1 billion when the company plans to file for Chapter 11 protection in March.
The company said that it does not plan to lay off any workers and that pay for vendors and employees will remain the same under the restructuring agreement.
Revel’s CEO, Kevin DeSanctis, said that filing bankruptcy will enable the casino to operate more flexibly.
"Today's announcement is a positive step for Revel," DeSanctis said. "The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility."
According to the Associated Press, the combination destination resort and casino was viewed as “a potential game-changer” when it opened in April of 2012. It was heralded as a personal victory for Gov. Chris Christie in his effort to rejuvenate the city’s flagging casino industry back in the spring, but has since failed to meet expectations.
Many customers reportedly found the resort’s restaurants and hotel rooms too expensive, while gamblers were reportedly displeased with the franchise’s ban on smoking inside the entire casino. To combat that issue, the company has said it plans to create a separate smoking area, the Wall Street Journal reported.
The Governor’s press secretary, Michael Drewniak, said that New Jersey is committed to boosting the casino market and has confidence that Revel will rebound.
"We are committed to the resurgence of Atlantic City, the tourism district, and the many efforts currently under way to bring world-class attractions and entertainment to the city," Drewniak said. "A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations as a premiere hotel, gaming and top-flight entertainment hub for the city, in addition to employing more than 2,000 people. Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City's expansion."
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- Google Release Roundup: New Nexus 6, Nexus 8, Android 5.0 L Launch and Killer Features
- Unofficial ‘Samsung Galaxy Alpha’ Can Now Be Purchased For $700 In The US
- Xperia Z, Xperia ZL, Xperia ZR Android 4.4.4 KitKat Update Guide
- Canada Consumer Alert: Costco No Longer Accepting American Express Cards Starting Jan 1
- Amazon Announces Kindle Fire HD 6, Kindle Fire HD 7 Tablets; Official Release Date Is Oct 2
- Scotland Voted Against Independence, Early Results Indicate