Revel, the huge, new Alantic City, N.J., meeting hotel and casino, plans to file for Chapter 11 bankruptcy protection to improve cashflow and better support day-to-day operations.
The $2.5 billion beachfront property, which opened in May 2012, will continue normal operations during the financial restructuring process, with no affect on guests, meetings, events, employees, or vendors, according to officials. The voluntary filing will allow the owners, Revel AC Inc., to reduce the property’s debt by over $1 billion through an exchange of debt for equity. Revel owners intend to file for a “prepackaged chapter 11” in March, meaning that the reorganization plan has already been agreed to by its lenders. The reorganization process is expected to be complete by early summer.
“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,” said Kevin DeSanctis, Revel's chief executive officer.
The resort features 1,200 guest rooms, 160,000 square feet of meeting space, including 20 meeting rooms, a 30,000-square-foot ballroom, and a 5,500-seat theater. It also has 12 restaurants, two nightclubs, and 90,000 square feet of outdoor event space.