Legal News

Revel Casino of Atlantic City Files for Bankruptcy
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

When the huge Revel Casino complex in Atlantic City opened on April 2, 2012, with a 1,800-room hotel, theaters, 14 restaurants, 2400 slot machines and almost 100 table games, they thought it was going to become the top grossing casino in Atlantic City. However, the gamblers had other plans.

While Borgata remained the top grossing casino in the city backed by MGM Resorts International and Boyd Gaming, Borgata had opened in 2003. Revel’s year of opening with the throes of the recession still going on was hardly good timing. And the gambling crowd it hoped to attract went to the adjacent state of Pennsylvania instead, making Pennsylvania the second-largest U.S. gambling market.

So, long story short, within close to a year of opening, the Revel Casino has filed for bankruptcy protection on Monday to wipe off more than $1 billion debt and hand over control to lenders. Under the Chapter 11 filing, Revel will cut its debt down to $272 million from about $1.52 billion. The plan has already secured the number of lender’s votes required for court approval.

  
What
Where


Jeffrey Hartmann, the interim CEO of Revel, said in a statement, “Backed by overwhelming lender support, we remain on track to complete our financial restructuring ahead of the critical summer season.”

Revel would be continuing its regular business operations while the financial restructuring takes place.

The principal lenders, including Canyon Capital Advisors and Chatham Asset Management would become the new owners once the Chapter 11 proceedings are concluded.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The earliest fund behind Revel Entertainment Group LLC had been Morgan Stanley, which sold its stake for a $932 million loss after partially completing the building. Ultimately, the complex took about $2.4 billion to build. But it did not bring the glitz it promised to Atlantic City.

A group of investors led by Kevin DeSanctis had bought Morgan Stanley’s stake. For completing rest of the project, the new owners received a tax package of about $261 million from the state of New Jersey and obtained another $1.15 billion of financing.



Earlier this month, DeSanctis resigned from his post as the chief executive of Revel.



 

RELEVANT JOBS

Senior Director, Associate General Counsel - Contracts

USA-NJ-Parsippany

Pacira BioSciences, Inc. is a leading provider of non-opioid pain management and regenerative health...

Apply now

Senior Corporate / Commercial Attorney |

USA-VT-Burlington

Downs Rachlin Martin – Northern New England’s largest business law firm - has a signific...

Apply now

Litigation law clerk

USA-VA-Alexandria

Paralegal Job Opening  Company Name:  Old Towne Associates, P.C. Company Locati...

Apply now

Senior Counsel, Shared Services & Litigation

USA-GA-Carrollton

Southwire is seeking to hire an experienced attorney to serve as Senior Counsel to provide advice an...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Managing Attorney

USA-MD-Baltimore

Baltimore office of our client seeks managing attorney with 10 years of experience. The candidate wi...

Apply Now

Sole Practitioner

USA-WI-Milwaukee

Milwaukee office of a BCG Attorney Search Top Ranked Law Firm seeks sole practitioner with experienc...

Apply Now

Estate Planning and Probate Attorney

USA-VA-Fairfax

Fairfax office of our client seeks estate planning and probate attorney with 5+ years of experience....

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top