Under the terms of the restructuring, the Revel Group will no longer own the casino, but a licensing agreement will be kept in place, allowing it to continue to operate under the Revel name. In a statement, Revel revealed that it had already secured more than the number of lenders’ votes required for the court to approve its plan. “Revel’s debt burden, in the context of numerous broader challenges facing the Atlantic City casino market and certain startup issues unique to Revel, has proven unsustainable”, the company said in the Chapter 11 paperwork. The company announced that under the terms of its bankruptcy it will reduce that debt by 82 percent to $272m via a debt-for-equity conversion. According to data from the New Jersey Division of Gaming Enforcement, the $2.4bn resort generated the second lowest gambling revenue among the market’s 12 resorts in January 2013.Īccording to paperwork filed at a bankruptcy court in Camden, New Jersey, Revel listed debts of around $1.52bn and assets of $1.1bn.
Revel, which opened its doors on 2 April 2012, has struggled to meet the expectations of its backers. The group filed a bankruptcy plan which would turn control of the resort over to its lenders and eliminate almost $1bn of the company’s debts. Revel Entertainment Group, the owners of floundering casino Revel Atlantic City, filed for Chapter 11 bankruptcy in late March, less than a year after the casino opened for business.
