Revel laying foundation for bankruptcy? - NBC40.net

Revel laying foundation for bankruptcy?

Posted: Updated:
ATLANTIC CITY -

It now appears that bankruptcy could soon be a reality for Revel casino, which has seemed to be in trouble almost since its start.

Its towering glass structure, brand new games, and stunning views were supposed to draw in the masses, but it seems the master plan has failed.

"When you first came here it was like they did not know what to do," gambler Todd Malicki said.

After a shaky grand opening memorial day weekend, Revel has failed to turn a profit. In January gambling revenue topped out at just 8 million dollars, the city's second lowest for the month.

"They were trying to change the paradigm of visitation to Atlantic City," gaming expert Roger Gros said.

Now the Wall Street Journal reports Revel has hired restructuring lawyers and bankers to figure out its options for dealing with its heavy debt of $1.2 billion.

Gaming analyst Roger Gros says this bankruptcy is almost unavoidable.

"It will be much easier for them to survive they have such a large nut to crack," Gros said.

Experts say bankruptcy or not, Revel needs a new game plan.

"I think they are going back to square one right now. They are talking about focusing more on the gaming product," Gros explained.

That gaming product may largely be responsible for the resorts downfall.

"I Think they were slow to do a lot of the rewards programs. Now they are starting," Malicki said.

In a statement Revel says in part that they have consistently worked to increase their financial flexibility and that they will continue to evaluate various alternatives with regard to their capital structure.  As far as outsiders are concerned it comes down to one thing.

"I think they have a real shot at making it if they really refocus on the gaming customer," Gros explained.

Dozens of contractors who did work for revel have filed liens with the county clerks office because they have not been paid. Experts say if the casino does file for bankruptcy, it is unlikely many of the those businesses will ever receive payment.

This is not the first time an Atlantic City casino has filed for bankruptcy. Experts say as long as revel plays its cards right, the doors will stay open and revel could have a successful future.

 

Most Popular

Stories
Videos
loading...
Powered by WorldNow
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WMGM. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.