Owners for Revel AC In (with its Company, "Revel"), located on the Boardwalk in Atlantic City, New Jersey, announced its "restructuring" plan to help reduce its debt load by over $1 billion through an exchange of debt for equity. Its plans is to recapitalize through a consensual prepackaged Chapter 11 reorganization. This will help wipe away about a two-thirds $1.5 billion in debt, converting the sum into equity for lenders, and also create added incentive for future investments.
For Revel CEO, Kevin DeSanctis, the move is merely a case of "restructuring," and will give the casino greater flexibility.
"This is a positive step for Revel," he said. "The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year year will continue to enjoy a signature Revel experience in our world-class facility."
Its press release indicates that "lenders will provide the Company with additional liquidity to ensure financial stability throughout the reoganization process." No tax payer funds will be used to finance its restructuring.
"The reduction of debt-service expense this agreement will greatly improve Revel's cash flow to better support day-to-day operations. This restructuring positions Revel for long-term success by providing the Company with the operational flexibility to invest in the growh of our business," added Michael Garrity, Revel's CIO.
New Jersey Governor Chris Christie said on Wednesday that he remains confident in Revel's ability to help give a lift to Atlantic City. Christie added he hoped for those to continue investing in businesses throughout Atlantic City.
"Those people who were owed debt are now taking ownership in the hotel - they're showing their faith and confidence in the future of Atlantic City by not walking away and closing the place down," the governor said. "We've had challenges in Atlantic City for a decade that nobody's been willing to do anything about," he said. "And we're actually trying to do something. I told you, give me five years to see if we can fix A.C. We're about 2 1/2 years into it."
Revel features more than 1,800 rooms with a sweeping ocean view, with resort houses featuring a 130,000-square foot casino. Revel ensures memorable daylife and nightlife experiences "crafted to bring the outside in and the inside out," with the very best amenities, including pools, gardens, lounges, and spa.
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