Ten months after it opened, Revel casino announced it will file for bankruptcy.
Revel announced Tuesday night that it will file for Chapter 11 bankruptcy protection in March in an attempt to reduce its mounting debt. In a news release, the company said it will reduce about two-thirds of its $1 billion debt by exchanging its debt for equity for its lenders.
Lenders will provide Revel with about $250 million, however, the company will remain in control of the casino's assets and business operations.
The company's financial shuffling is expected to finish by the beginning of summer. No layoffs or management changes are planned, and employees and vendors are expected to be paid on time, according to the news release.
Once considered the next big thing in Atlantic City gaming and entertainment, the flashy $2.4 billion casino, which opened in April, failed to trump the cash flow of Atlantic City's 12 other casinos.