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It’s Official: Revel Files for Chapter 11 Bankruptcy

March 26, 2013, 07:46 AM
Filed Under: Bankruptcy

AC Revel Inc., owner of the struggling Revel casino in Atlantic City, formally filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Camden Monday, as expected.

The prepackaged bankruptcy, with terms Revel's creditors have agreed to, is meant to reduce the casino's estimated $1.5 billion in debt by about $1 billion and provide it $250 million in debtor-in-possession financing, $42 million of which is new money. The additional financing will provide Revel new working capital, fund certain capital expenditures and pay other expenses related to the financial restructuring.

The company said in a statement after the filing that Revel has secured votes from a supermajority of its lenders, which is in excess of the amount required for the court to approve the plan.

"Backed by overwhelming lender support, we remain on track to complete our financial restructuring ahead of the critical summer season," said Jeffrey Hartmann, Revel's interim CEO. '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's new interim CEO, Jeffrey Hartmann, a former chief executive at Mohegan Sun Casino Resort in Connecticut, received regulatory approvals last weekto start the job. He replaces Kevin DeSanctis, who stepped down.

The company expects to complete its restructuring, which is subject to bankruptcy court approval and the conditions set forth in the restructuring agreement, within 45 to 60 days. It said it anticipates emerging from Chapter 11 by early summer - the start of the peak Shore season.

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