I don’t like this one bit but it looks as if Revel in Atlantic City may be preparing for bankruptcy.
Revel warned federal regulators last year that a bankruptcy or foreclosure was possible, and the Wall Street Journal’s report lends new credence to that notion.
The newspaper reports that in recent days Revel has hired the law firm Kirkland & Ellis and the investment bank Moelis and Co.
The two firms have advised companies on bankruptcy filings and debt restructuring — two option the newspaper said casino leaders are considering.
Sources told the Journal Revel was weighing a “prepackaged bankruptcy” intended to get creditors to agree to a restructuring plan in advance of a Chapter 11 filing.
I was befuddled about how Revel can be anywhere near bankruptcy in the past but I have a different take on it now. Besides people not visiting Revel to eat, drink and gamble Revel cost far too much to build. Building something beautiful but cheaply is a difficult combination.
Bankruptcy isn’t death, it’s financial restructuring. Station Casinos (my home casino) recently emerged from bankruptcy and its casinos seem to be doing better business than ever. I’m still looking forward to checking out Revel when I head back east later this year. Not that it will matter to my visit, but hopefully they get their stuff together by then.
Photo – flickr - Paul Katcher
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