Gambling Business: Revel Casino Exits Bankruptcy$1.2 Billion Out Of $1.5 Billion In Debt Wiped Away |
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Revel, Atlantic City’s most expensive casino ever, emerged from Chapter 11 bankruptcy protection on Tuesday. It was built just over a year ago.
The casino announced in February that it would file for bankruptcy, and a judge approved the move last week. The bankruptcy filing has wiped away $1.2 billion of its $1.5 billion in debt. As a result, lenders have been issued an 82-percent ownership stake in the property.
According to the Associated Press/CBS: “The casino is now “singularly focused on attracting guests to the property through an expanding range of amenities and exciting new programming,” said Jeffrey Hartmann, Revel’s interim CEO. He took over leadership of the resort from Kevin DeSanctis, who helped shepherd the project through its tortured construction, during which it ran out of money and lost its major backer, Morgan Stanley. DeSanctis remains with the company in a different capacity.”
Revel posted a $149 million operating loss in the first year it was open. It now has $272 million in debt. It reportedly doesn’t expect to turn a steady profit until next summer.
According to the Associated Press/CBS, Dennis Stogsdill, Revel’s chief restructuring officer, called the bankruptcy court exit “a monumental day for Revel.”
“With a right-sized balance sheet, reduced debt load and improved cash flow, we have emerged from this process stronger and better positioned for success,” he said.
Revel has more than 2,400 slot machines and 130 table games. It will now allow gamblers to smoke in certain parts of the casino. It originally was the city’s only non-smoking gambling joint, though that model didn’t seem to work.
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