LITTLE FERRY, N.J. (CBSNewYork/AP) – Less than a year after opening, the Revel casino and hotel in Atlantic City has announced it is filing for chapter 11 bankruptcy next month.
“What’s happening is merely a shifting of Revel’s debt load to equity,” said Gov. Chris Christie in Little Ferry on Wednesday.
The way the governor sees it, the lenders who were owed $1.5 billion in debt are now taking ownership in Revel.
As Robin Rieger of KYW-TV, CBS 3 Philadelphia reported, Revel officials said the bankruptcy filing will give the resort $45 million in additional funding, and allow the company to wipe out the debt — giving creditors stake in the company. Visitors won’t see a difference in day to day operations.
New Jersey gave the resort over $250 million in tax credits to complete the project. Officials said no taxpayer funds will be used in the restructuring.