\nJuly 11 (Bloomberg) \u2014 Revel AC Inc., whose Atlantic City, New Jersey, casino has been in bankruptcy twice since it opened in 2012, resolved unsecured creditors\u2019 objections to a sale process, and now will see whether any bidders are willing take a gamble on the ailing resort.<\/p>\n
\tRevel and lender Wells Fargo & Co. today reached a deal with the official committee of unsecured creditors over lenders\u2019 ability to offer debt rather than cash in an auction for the company\u2019s assets. At a hearing in U.S. Bankruptcy Court in Camden, New Jersey, they also agreed on a deadline for submitting offers.<\/p>\n
\tAfter Revel has negotiated specific language with the creditors and Wells Fargo, it will give U.S. Bankruptcy Judge Gloria M. Burns documents by July 14 so she can formally approve the sale procedures. The company plans to hold an Aug. 7 auction, according to John K. Cunningham, a lawyer for Revel. Bids to take part in the auction must be submitted by Aug. 4.<\/p>\n
\tA good indication of whether Revel will survive or perish will come as early as July 18, when non-binding letters of interest are due.<\/p>\n
\t\u201cIn a perfect world we would have plenty of time to sell,\u201d Burns said in court today. \u201cUnfortunately that\u2019s not the case.\u201d<\/p>\n
\tSecond Filing<\/p>\n
\tRevel\u2019s bankruptcy, its second in just over a year, comes as Atlantic City casinos face increased competition from gambling venues in neighboring Pennsylvania and Maryland.<\/p>\n
\tCasino revenue in the New Jersey gambling mecca has plummeted more than 40 percent to just over $2.8 billion in 2013 since reaching a yearly high of more than $5 billion in 2006.<\/p>\n
\tRevel opened in April 2012 at a cost of $2.6 billion, only to shut down for five days a few months later because of Hurricane Sandy. It filed a first bankruptcy in March of the following year before seeking creditor protection again last month.<\/p>\n
\tThe casino and resort, on Atlantic City\u2019s Boardwalk, has about 130,000 square feet of gaming space, with 2,400 slot machines, 130 table games and a poker room, according to its website. The resort has 1,399 rooms, indoor and outdoor pools, as well as 13 restaurants and night clubs.<\/p>\n
\tWorkers Warned<\/p>\n
\tRevel, which employs about 3,140 people, told workers last month that it may be forced to close for good if it fails to attract a buyer. The company said their jobs may be terminated as early as Aug. 18 if it can\u2019t sell the business as a going concern. The notice was given to comply with laws that require companies to warn workers of possible mass job cuts.<\/p>\n
\tWells Fargo is providing as much as $125 million in financing to help fund operations while Revel pursues a sale.<\/p>\n
\tRevel owes about $137 million on secured revolving facilities with JPMorgan Chase Bank NA as agent, according to court papers. It owes about $310 million to lenders under another secured term loan with Wilmington Trust NA as agent.<\/p>\n
\tIn its previous trip through bankruptcy, Revel cut its debt by about $1.2 billion, handing ownership of the company to creditors. Chatham Revel VoteCo LLC owns 27.4 percent of the equity, Canyon RC Holdings LLC has a 15.7 percent stake and American High-Income Trust owns 11.5 percent of the company, according to court papers.<\/p>\n
\tThe case is In re Revel AC Inc., 14-bk-22654, U.S. Bankruptcy Court, District of New Jersey (Camden). The previous case is In re Revel AC Inc., 13-bk-16253. U.S. Bankruptcy Court, District of New Jersey (Camden).<\/p>\n
Posted by:<\/strong> Scan on July 16, 2014, 1:49 am<\/p>\n July 11 (Bloomberg) \u2014 Revel AC Inc., whose Atlantic City, New Jersey, casino has been in bankruptcy twice since it opened in 2012, resolved unsecured creditors\u2019 objections to a sale process, and now will see whether any bidders are willing…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-7667","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=7667"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/7667\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=7667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=7667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=7667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}