New casino bankruptcy news is coming out of Atlantic City. The Revel Resort and Casino is filing for bankruptcy it seems, making it the latest business to suffer from a downturn in travel to Atlantic City. According to a report from Tuesday (Feb. 19), the casino will file for Chapter 11 bankruptcy protection in March, which is actually less than a year since it opened.
The casino originally opened to a lot of fan fare, but it seems that the customers just didn't come through the doors. It already has $1.5 billion in debt and according to the report, the hope by filing for bankruptcy is to convert more than $1 billion of it into equity for lenders.
Revel was reported to have cost $2.4 billion to construct and the thought had been that it could rival the best casinos in Atlantic City. Instead, it didn't perform well out of the gate and remained below most of the other locations when it came to revenues. That spelled doom for the casino, especially with the overhead expenses.
To put it in perspective, this new casino bankruptcy was spurred by the revenue Revel brought in during the month of January. The $2.4 billion facility made less than $8 million from gamblers in the month, showing that debts were not getting any closer to being paid.
The doors will stay open through this Chapter 11 filing and nobody is set to lose their jobs yet.
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