Revel Would Have Closed Without Emergency Money
Revel says it would have shut down had a bankruptcy court judge not approved temporary financing for Atlantic City’s newest casino.
On the first day of its Chapter 11 case in Camden, a lawyer for Revel said the $2.4 billion resort was within days of running out of cash. And had Judge Judith Wizmur not authorized a $250 million plan on Wednesday for temporary financing during bankruptcy, the company would have “liquidated.”
Wizmur approved the so-called “debtor-in-possession” financing that will allow Revel to keep operating during bankruptcy, a process the casino hopes to complete by May 30.
Under a deal worked out with lenders that still needs the judge’s final approval, Revel will eliminate 82 percent of its $1.5 billion debt by converting most of it into equity for lenders.
(Copyright 2013 by The Associated Press. All Rights Reserved.)