ATLANTIC CITY, N.J. — Revel, the casino many people had hoped would turn around Atlantic City’s sagging fortunes, said Tuesday that it will file for Chapter 11 bankruptcy protection in March, less than a year after it opened.
The voluntary, prepackaged bankruptcy envisioned for late March will wipe away about two-thirds of its $1.5 billion in debt by converting more than $1 billion of it into equity for lenders.
Kevin DeSanctis, Revel’s CEO, said the restructuring will give the casino resort more flexibility to operate.
“Today’s announcement is a positive step for Revel,” DeSanctis said. “The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility.”
Existing management will remain in place, no layoffs are planned, and employees and vendors will be paid as usual, the company said. The restructuring should be completed by early summer, it added.
The $2.4 billion casino never caught on as much as it had expected to, and it remained mired toward the bottom of Atlantic City’s 12 casinos in terms of casino revenue. Revel had to line up two rounds of additional financing since August to keep operating.