[PhillyFlyers]

The first in a domino effect for Atlantic City's Casinos?

ATLANTIC CITY, N.J. - Revel, the casino many people had hoped would turn around Atlantic City's sagging fortunes, said Tuesday that it will file for Chapter 11 bankruptcy protection in March, less than a year after it opened.

The voluntary, prepackaged bankruptcy envisioned for late March will wipe away about two-thirds of its $1.5 billion in debt by converting more than $1 billion of it into equity for lenders.

http://www.philly.com/philly/busines...ankruptcy.html

[TankHankerous]

Revel sucks. No smoking anywhere on the premises? Get real.

[tto827]

They filed for bankruptcy, they aren't shutting down.
Grand closing my ass... Fukkin idiot.

[Russian Rocket]

ATLANTIC CITY, N.J. (AP) — From the day it opened last April, Revel insisted it was a different kind of casino.
It shunned bus-riding day-trippers, banned smoking, hired a mostly nonunion workforce and told employees they'd have to reapply for their jobs every five years or so. It concentrated on the well-to-do leisure traveler and the business client instead of the slot-playing granny and opened up views of the ocean with floor-to-ceiling windows in a seaside resort where everyone else sought to keep gamblers focused on gambling.
Yet less than a year after it opened, Revel finds it has become like many other Atlantic City casinos: drowning under way too much debt, fighting for a share in a shrinking market and preparing for a date in bankruptcy court with major questions about its future looming large.
Revel said Tuesday that it will file for Chapter 11 bankruptcy protection in late March. The voluntary, prepackaged bankruptcy will wipe away about two-thirds of its $1.5 billion in debt by converting more than $1 billion of it into equity for lenders.
Kevin DeSanctis, Revel's CEO, said the restructuring will give the casino resort more flexibility to operate, calling it "a positive step for Revel."
"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," he said.
Existing management will remain in place, no layoffs are planned, and employees and vendors will be paid as usual, the company said. The restructuring should be completed by early summer.
The $2.4 billion casino never caught on as much as it had expected to, and it remained mired toward the bottom of Atlantic City's 12 casinos in terms of casino revenue. Revel had to line up two rounds of additional financing since August to keep operating.
In January, it posted its second-worst month, winning less than $8 million from gamblers. During the second and third quarters of last year, it reported gross operating losses of $35 million and $37 million.
Revel's largely nonunion stance earned it the undying enmity of Local 54 of the Unite-HERE union, representing most of the city's casino workers.
"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. "Had they listened to us three years ago, we would not have this catastrophe on our hands now."
Michael Drewniak, Gov. Chris Christie's press secretary, expressed confidence in Revel.
"We are committed to the resurgence of Atlantic City, the tourism district, and the many efforts currently under way to bring world-class attractions and entertainment to the city," he said. "A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations as a premiere hotel, gaming and top-flight entertainment hub for the city, in addition to employing more than 2,000 people. Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City's expansion."
David Rebuck, director of the state Division of Gaming Enforcement, said the Chapter 11 filing needs to happen.
"The agreement between Revel and its lenders will allow for a necessary financial restructuring and improve the property's financial condition going forward," he said. "We see this as a positive step that will allow Revel to comprehensively address its financial needs while continuing normal business operations."
It is the latest in a series of recent bankruptcies involving Atlantic City casinos. Trump Entertainment Resorts emerged in 2010 from the third Chapter 11 bankruptcy that it or its corporate predecessors had filed, and the Tropicana Casino and Resort was sold that same year out of bankruptcy court to billionaire Carl Icahn.
As part of the restructuring, some of Revel's lenders will provide approximately $250 million in debtor-in-possession financing, about $45 million of which constitutes new money commitments and approximately $205 million of which is prepetition debt. No taxpayer funds will be used to finance the restructuring, the casino said.
The company didn't identify which lenders will be part of the filing; it said only that "a majority" of its lenders have agreed.
Revel was the first new casino built in Atlantic City since the Borgata Hotel Casino & Spa opened in 2003.
It was an ambitious, risky project in a declining market. It saw itself not as a casino resort but as a resort that happened to have a casino. But the distinction seemed to have been lost on many customers, who found its restaurants and hotel rooms pricey.
The project had to overcome numerous obstacles before its opening. Three key executives working on the project died in a Minnesota plane crash in July 2008; a worker pouring concrete was struck by lightning and killed in 2011.
The project ran out of money during the recession and had to stop construction halfway through. Morgan Stanley pulled out, taking a $1.2 billion loss on the project. It only got completed with the help of state tax incentives that were approved in February 2011.

[Russian Rocket]

They filed for bankruptcy, they aren't shutting down.
Grand closing my ass... Fukkin idiot.

exactly

[Grits n' Gravy]

Can cut and paste an article but can't comprehend the words in it. Shocking.

Most people knew this would be the outcome for Revel. Wouldn't surprise me if MGM bought it for pennies on the dollar. It is the Cosmo of AC without Deutsche Bank's backing.

[t-wizzle]

PhillyFlyers you idiot. Bankruptcy does not equal closing.

Fukking dumbass.

[Mikeyanks23]

PhillyFlyers you idiot. Bankruptcy does not equal closing.

Fukking dumbass.

wouldnt expect anything less from him.

on a side note. i like to play a game with myself. I read yahoo headlines and then guess which one/s he will post on sbr that day.

On some boring days i try to guess if someone else will post it 12 hrs earlier. And figure out if he notices it was posted or just gets so excited and copys and comes right to sbr

[InTheDrink]

Here's an email i got from these twinks

i really hope phillyflyers is like 19 years old because if he's over 25 that guy has no hope of ever getting a fukkin clue on anything in life

Dear Drinker,

Because we value your loyalty to Revel, we wanted you to be among the first to know about an announcement we made today.
As always, Revel's top priority is the guest experience, therefore we have reached an agreement with a majority of our lenders to significantly reduce our debt through a financial restructuring. This restructuring will improve cash flow to better support our day-to-day operations and future growth.

Rest assured that during this process we will continue to operate our business as usual, meaning your Revel card rewards, all guest loyalty plans and promotions will be honored, and upcoming events will proceed without change or interruption.
Revel was founded on the ability to provide a premier gaming experience as well as a world-class hotel and spa, restaurants helmed by award-winning chefs and outstanding shopping, nightlife and daylife. Such distinctive offerings are the reason why our resort has been recognized nationally for numerous accolades and sets us apart as a destination.

Revel's unique resort destination will continue to deliver on an experience unmatched in the Northeast. In March we have a lot of fun things planned starting with the Always Classic Corvette Giveaway hosted by Wayne Carini from Chasing Classic Cars. Join us at the Social at 11pm on Saturday, March 2nd to win a Chevy Corvette Convertible. Then on Saturday, March 9th. Revel will be giving away a Tahitian Beach Dream Vacation.

Once again, customer service and guest experience remain our top priorities. Our primary focus has not changed: our staff remains committed to providing a signature Revel experience for you and all of our guests.
We look forward to seeing you during your next visit to Revel.

Sincerely,
Darlene Monzo
Senior Vice President of Marketing

[Russian Rocket]

business as usual