Bankrupt Revel Casino Facing Closure
Last week the Revel Casino in Atlantic City filed its second Chapter 11 protection in a little over a year and said that unless a buyer is found that has “the ability to provide the funding and long-term commitment to help Revel reach its full potential,” then the casino may have to close.Revel was built with the hope of creating a casino to rival those in Las Vegas.
However, it soon ran into trouble when Morgan Stanley pulled out of construction and took a $932 million loss along the way.
Revel opened in April 2012 but just ten months later filed for bankruptcy.
Last year in May it received court approval for a restructuring plan which reduced its debt from $1.503 billion to $272 million.
As part of the plan Revel declared that the casino’s value had dropped to $450 million and forecast no profits until at least 2017.
Since then the casino has continued to bleed money. Revel is owned by a conglomerate of investors who now wish to sell it. However, the resort which cost $2.4 billion to build is now estimated to be worth just $25 – $73 million.
Now the race is on to find a buyer who can keep the casino in operation and prevent further loss of money or jobs.