Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
New Jersey's Revel Casino Exits Bankruptcy Protection
Author: Joel R. Glucksman
Date: June 4, 2013
Key Contacts
Back
Atlantic City, New Jersey casino Revel AC, Inc. has formally emerged from bankruptcy protection after struggling to overcome heavy operating losses incurred during its first year of operations.
The company said it has completed its restructuring under the terms set forth by its Chapter 11 plan. The restructuring plan that was approved by both the U.S. Bankruptcy Court for the District of New Jersey and the New Jersey Casino Control Commission allowed the casino to reduce its outstanding debt by approximately $1.2 billion and its annual interest expense on a cash basis by $98 million.
“We view this as a significant milestone for Revel and now turn our undivided attention towards growing our casino revenue base and are singularly focused on attracting guests to the property through an expanding range of amenities and exciting new programming,” said Jeffrey Hartmann, Revel’s interim CEO.
The company also cited its reduced debt load, right-sized balance sheet, and improved cash flow as potential keys to its future success.
Revel AC initially opened in 2012, but quickly sought bankruptcy protection in February 2013 and posted operating losses of $149 million from its April 2, 2012, opening through the end of March 2013, according to The Associated Press. The company is still facing roughly $272 million in debt, but Revel indicated it is confident that new amenities and policies may help it begin to turn a profit as early as next summer.
The casino issued predictions that its net revenue will increase to roughly $256.4 million in 2013, up considerably from $152 million in 2012. The company also predicts that revenue will continue to climb, reaching $322.8 million in 2014 and $378.9 million in 2015. Revel expects its operating losses will fall to a projected $43 million this year.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.