The Revel – the first new casino in Atlantic City since 2003 – announced that it plans to file for bankruptcy protection.
Revel AC – which owns the casino – was strongly backed by New Jersey Governor Chris Christie, reports Bloomberg. Christie hoped that a new casino and new ownership would help to revive the flagging gambling town on the New Jersey coast.
The filing will relieve Revel AC of about one billion dollars worth of debt. Some of its existing lenders are providing $250 million worth of additional debtor-in-possession financing. They will also be providing an additional $45 million in new loans to the project.
Originally built for $2.6 billion dollars, the project was championed by Christie following its abandonment by Morgan Stanley. The project faced significant competition outside the state as New Jersey’s gambling revenues have fallen for six straight years. Then Hurricane Sandy hammered the shore and the business couldn’t maintain itself.
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