Gambling is generally thought of as a time to have fun, but to others, a casino is no laughing matter. Revel AC Inc. in New Jersey has filed for bankruptcy twice since it opened in 2012. Much of the strain is being caused by patrons visiting nearby casinos in Pennsylvania, New York and Maryland. After a number of issues, the company made the decision to file for Chapter 11 bankruptcy protection for the second time.
Revel has had a number of issues since it first opened in April of 2012. The revenue for Atlantic City casinos has taken a huge hit and has gone down 40 percent from its high point back in 2006. Several months after the $2.4 billion casino opened, it was forced to close its doors for five days in light of Hurricane Sandy. One month later, the company filed for bankruptcy the first time, and then several months later it filed a second time.
Atlantic City’s mayor has faith that Revel could receive about $100 million to $200 million for its large gaming space. The spacious casino has 130,000 square feet for players to game, 130 table games and 2,400 slot machines in which to play. According to the bankruptcy filing, Revel has approximately $1 billion in debts and assets despite all its amenities.
Fortunately, the New Jersey casino received multiple purchasing bids that caused it to hold off on the scheduled auction. This would give the company a chance to review the offers and determine the best course of action. Filing for Chapter 11 bankruptcy protection could be a great option for a company in order to make itself more attractive to a suitable buyer in the hopes of securing a successful future for the business.
Source: bloomberg.com, “Revel Postpones Bankruptcy Auction a Week to Analyze Bids“, Michael Bathon, Aug. 7, 2014
Source: bloomberg.com, “Revel Postpones Bankruptcy Auction a Week to Analyze Bids“, Michael Bathon, Aug. 7, 2014
