Tuesday, June 24, 2014

Revel auction set for Aug. 6; date is tentative



Revel AC Inc. has set Aug. 6 as the tentative auction date for Atlantic City's Revel Casino Hotel, subject to bankruptcy court approval.

In order to participate in the auction, bidders will have to submit qualified bids by Aug. 1, according to a motion filed Saturday in U.S. Bankruptcy Court for the District of New Jersey by lawyers for Revel.

The attorneys requested a July 11 hearing on the bid procedures, arguing that Revel doesn't have enough money to continue operating for long.

"Without an expedited sale, the debtors would have no obvious alternative other than to cease operations and liquidate their assets," the motion filed Saturday said.

Revel filed for its second bankruptcy Thursday, about 13 months after emerging from the first reorganization in May 2013.

The first bankruptcy wiped out $1.23 billion in debt and reduced the property's annual interest expense to $30 million from $100 million. Hedge funds controlling $923 million in debt received 100 percent of the equity in Revel.

When Revel filed for bankruptcy last week, the 1,400-room hotel and casino had more than $447 million in secured debt and just $9 million in cash.

Source: Philly.com

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