Atlantic City casino Revel files for bankruptcy (UPDATED)
Atlantic City’s Revel Casino yesterday filed for Chapter 11 protection in U.S. Bankruptcy Court, fulfilling a financial restructuring agreement announced last month that’s expected to cut more than $1 billion in debt.
“Backed by overwhelming lender support, we remain on track to complete our financial restructuring ahead of the critical summer season,” Revel AC Inc. interim CEO Jeffrey Hartmann said in a statement.
“We will emerge from this recapitalization positioned for long-term success, with the financial capacity to pursue our amenity enhancement opportunities, and the ability to continue providing our guests with a signature Revel experience.”
Revel intends to continue normal business operation throughout the restructuring, which is not expected to impact casino guests or employees. Workers and vendors will continue to be paid as scheduled and customer promotions, events and services will move forward without change or interruption, according to a release.
The embattled casino, which took about five years and $2.4 billion to construct, will under the plan reduce its debt from an estimated $1.52 billion to about $272 million in a debt-for-equity conversion.
Revel will obtain about $250 million in debtor-in-possession financing from lenders and about $335 million in exit financing, the proceeds of which will provide the resort with working capital, fund certain expenses and repay debts.
Representatives said they expect a court to approve the plan as a supermajority of the casino’s lenders have already agreed.
The company hopes to emerge from Chapter 11 bankruptcy by early summer.
It is unclear whether officials intend to make significant changes to the casino’s appearance or operations. Revel is generally billed as a destination resort that places less focus on gaming than the rest of Atlantic City’s casinos.