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.
Atlantic City’s Revel Casino has one again filed for bankruptcy and will have to close if a buyer is not found.
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.
