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Revel Bankruptcy Update: Judge OKs First Day Motions

March 28, 2013, 07:47 AM
Filed Under: Bankruptcy
Related: Bankruptcy, Revel AC

Acknowledging the time constraints that Revel AC Inc. faces to get its financial house in order in time for the summer season, U.S. Bankruptcy Judge Judith Wizmur on Wednesday approved a series of first-day motions by attorneys for the casino, including interim approval of $250 million in debtor-in-possession financing, according to The Philadelphia Inquirer.

Final approval for the debtor-in-possession financing is April 18 and for the restructuring plan is May 13.

The casino's debt load and inability to generate sufficient gaming revenue since opening April 2, 2012, led to it filing for Chapter 11.

Under the pre-negotiated bankruptcy, lenders agreed to a debt-for-equity swap that will cut Revel's debt to $272 million from about $1.5 billion, the company said. The debtor-in-possession financing, the company said, will be used to fund capital expenditures, marketing, and other expenses.

Representatives of creditors also sought clarification of the debtors' intention with respect to the reorganization plan and the motions before the court.

The hearing was standard practice following a Chapter 11 filing and was largely administrative in nature. Wizmur set April 18 as the next hearing date.

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