Published February 19, 2013
Less than a year after opening its doors to much fanfare, struggling Atlantic City casino and resort Revel announced plans Tuesday night to file for a prepackaged bankruptcy in an effort to slash about $1 billion in debt.
In a statement, Revel said it plans to continue normal business operations during the bankruptcy, which could come as early as mid-March. Guests, employees and vendors aren't expected to be impacted.
"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," CEO Kevin DeSanctis said in a statement.
Revel, which first opened in April, said it has reached an agreement with a majority of the lenders to reduce about $1 billion in debt through an exchange of debt for equity.
The resort then plans to recapitalize through a consensual prepackaged Chapter 11 reorganization.
Revel said lenders have agreed to provide the resort with additional liquidity to ensure financial stability throughout the process, including $250 million in debtor-in-possession financing. The casino said no taxpayer funds will be used.