Revel, the casino that many believed would turn around Atlantic City's recent bad luck, stated this week that they will be filing for Chapter 11 bankruptcy protection this March, just one year after they opened according to a report by the Associated Press.
The voluntary bankruptcy will eliminate two-thirds of the company's $1.5 billion debt by converting more than 1 billion of it into equity for lenders. Revel's CEO Kevin DeSanctis said that this will allow the company to resort more flexibility to operate according to the report.
"Today's announcement is a positive step for Revel," DeSanctis said according to the Associated Press. "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."
No layoffs are planned as of yet, and existing management will remain in place according to the Associated Press. All employees and vendors will be paid as usual, and restructuring will be completed by August 2013.
When the $2.4 billion casino opened, experts predicted that it would help revive Atlantic City, but after being open for almost a year Revil has remained towards the bottom of their 12 casinos in terms of casino revenue.
January was the company's second-worst month yet, as they won $8 million from gamblers. During the second and third quarter, Revil reported losses of $35 million and $37 million, respectively according to the Associated Press.
"Over three years ago, Local 54 began expressing to every elected official in the city, the state and the governor's office that this project was doomed to failure," said Bob McDevitt, the union's president according to the Associated Press. "Had they listened to us three years ago, we would not have this catastrophe on our hands now."
This is just the latest casino to file for bankruptcy in the N.J. area with many being able to bounce back not to long after doing so. Trump Entertainment Resorts was able to overcome the third Chapter 11 bankruptcy in 2010 and Tropicana Casino Resorts was sold the same year out of bankruptcy court to multi-billionaire Carl Icahn.
Director of Gaming Enforcement David Rebuck stated that the Chapter 11 filing needs to happen, as the company has no other choice at this point.
"The agreement between Revel and its lenders will allow for a necessary financial restructuring and improve the property's financial condition going forward," said Rebuck according to the Associated Press. "We see this as a positive step that will allow Revel to comprehensively address its financial needs while continuing normal business operations."
Related Articles:
Women Hid Boy For 8 Years: Mother and Daughter Sentenced For Kidnapping Baby Boy In Texas, Hid and Renamed Him (PHOTOS)
Jeep's Twitter Account Hacked One Day After Burger King Hoax, Hackers Claim Company Was Sold To Cadillac, Changes Avatar Picture (PHOTOS)
Jerry Jones New Bus: Cowboys Owner Uses New Ride Called "The Elegant Lady" To Get Around NFL Combine, Cost $2.5 Million (VIDEO)
Four Dead In Shooting Spree In Southern California, Gunman Commits Suicide To Avoid Police, Three State Troopers, Several Others Injured (VIDEO)
Moon Water Discovered? Apollo Scientists Find "Significant Amounts" Of H2O in Moon Rocks, Challenges Theory On How The Moon Formed (VIDEO)
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
