The Atlantic City Ravel has filed for bankruptcy and is not receiving a government bailout, sources say.CEO Kevin DeSanctis, quoted by Press of Atlantic City, has issued a press statement, clarifying that the casino will be preserved by its lenders.
According to USA Today, company execs have announced their intentions of filing for Chapter 11 bankruptcy in March. The procedure should be concluded come summer, but the casino will be kept running.
Creditors are receiving higher equity stakes in the project, a tactic which will ensure its continued operation and a debt reduction of over $1 billion (€745 million).
"Today’s announcement is a positive step for Revel. [...] 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," DeSanctis tells reporters.
"The agreement between Revel and its lenders will allow for a necessary financial restructuring and improve the property's financial condition going forward.
"We see this as a positive step that will allow Revel to comprehensively address its financial needs while continuing normal business operations," adds David Rebuck, heading the casino's Division of Gaming Enforcement.
New Jersey Governor Chris Christie, represented by press secretary Michael Drewniak, has also stressed that the resort will not be closed down following the bankruptcy.
"A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations. [...] Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change," describes Drewniak.
Union reps have been critical of the casino's non-union policy, its debt accumulation and faulty business strategies. Local 54, an Atlantic City branch of the hospitality industry union UNITE-HERE, tells the press that they have expected the casino to go bust.
"Three and a half years ago, we were telling people this was not a good idea. [...] We warned them this would be a catastrophe, but no one listened. Now, it's a catastrophe," Local 54 President Bob McDevitt notes.