Revel To be into Chapter 11 Bankruptcy reports Busby Lee
Gov Christie says not to worry
Revel, which has been struggling as the newest casino and is now deep for the $2.5 billion project announced earlier in the week that it would voluntarily be filing for Chapter 11 bankruptcy. It notes it will remain open following the rough start during its opening year.
The once hailed company was supposed to be a game changer resort for the Atlantic City area and was billed to be ready to pull the area 'back from the brink'; however, the casino has not been able to turn a profit, and has now been eclipsed by the competitors in the city and in neighboring states.
The the now inevitable bankruptcy process, Revel is planning on converting $1.5 billion in its debt to a $1 billion in equity for its creditors. That will effectively give the creditors ownership of the casino instead of repaying the money outright.
Christie stated that the managed bankruptcy was nothing to fear or to cause a huge fuss over, and that it was a show of competence by the Revel's investors.
"They're investing in Atlantic City," Christie said at a news conference in a firehouse in Little Ferry. "If they thought that there was no future there, they could close Revel down. Instead they're taking debt that they're owed legally and turning it into ownership. That's an investment by these folks in that hotel."
The Christie administration approved a package of tax incentives for Revel over a 20-year period worth $261 million. The centerpiece of the plan was to bring back vibrancy to the city. None of the money is yet paid out, according to Christie.
"I told you, 'Give me five years to see if we can fix Atlantic City.' We're about two and a half years into that," said Christie, who is running for reelection this year. "So give me another two and a half years. You can call it a failure at the end of five if that's where it turns out, if that's where we wind up being, but I'm not ready to give up yet."
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