Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Atlantic City's Revel To File For Bankruptcy Again
Author: Joel R. Glucksman
Date: July 3, 2014
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Revel Casino Hotel is a massive 57-story, $2.2 billion casino that was supposed to be the future of New Jersey’s ailing Atlantic City.
The casino – a monolith of ocean-facing glass – was constructed over the course of six years, amid union protests, construction stops and government help, before opening for business in May 2012, according to Business Insider. The city pinned high hopes on the project, hoping that it would revitalize the area, which has seen steep competition as other cities and states open their doors to gambling.
Things didn’t go as planned, it seems, and the casino was forced to file for protection under Chapter 11 of the bankruptcy law June 19, Philadelphia’s The Inquirer reported. This will be the second time that Revel travels through bankruptcy court.
Fatal flaws in the casino’s design – including a long distance between the gambling floor and the front desk, an unappealing gambling floor and large, empty spaces – make the property very difficult to sell, according to the news source. Revel’s owners are hoping for $300 million to $400 million, but experts have said that it may fetch as little as $50 million to $60 million.
“The best thing that could have happened to that property is Hurricane Sandy, instead of nailing Seaside Heights, would have nailed that property,” Alan Woinski, chief executive of Gaming USA Corp, told The Inquirer. “It’s sad, but unfortunately that was the only way, to completely knock the thing down and redo it.”
Revel’s hedge fund owners have said that they are attempting to locate a buyer for the property with court supervision. If a buyer cannot be located, it is possible that the casino will be shut down.
If you have any questions about this post or would like to discuss your company’s creditors’ rights and bankruptcy matters , please contact me, Joel R. Glucksman at ScarinciHollenbeck.com.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
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