ATLANTIC CITY, N.J. (AP) - A day after announcing it will
shut down next month, Revel Casino Hotel told a bankruptcy court judge it is
still negotiating with potential buyers.
In a notice adjourning an auction of Revel that had been set
for Thursday, its lawyers say they are engaged in "ongoing
negotiations" with "certain potential bidders" they did not
identify.
The filing follows Revel's announcement that will shut down
by Sept. 10, having been unable to find a buyer.
The casino held out hope a buyer could eventually be found
through bankruptcy court, but said it needs to begin winding down its
operations.
"The debtors have continued to evaluate the bids
received and have been working with certain potential bidders with the goal of
naming a successful bidder," Revel wrote in its filing on Wednesday.
"As a result of these ongoing negotiations, and in an effort to maximize
the prospects for a value-maximizing sale transaction," the auction needs
to be postponed indefinitely.
Revel officials and attorneys would not comment on the court
filing.
The filing did not explicitly say so, but it appears to
leave the door open for bidders to try to purchase the property as a
non-gambling facility after it shuts down.
The news came on the same day that state casino regulators
reported Atlantic City's casinos took in 11 percent less from gamblers in July
than they did a year ago.
Figures released Wednesday by the state Division of Gaming
Enforcement show the 11 casinos won $274 million in July, compared with $297.1 million
in July 2013. That includes $10 million in Internet gambling revenue, which was
up by about $500,000 from June.
In a note to investors Wednesday, Wall Street agency Fitch
Ratings said Revel's anticipated closure "illustrates the depth of
distress for the Atlantic City gaming market." Hours later, Gov. Chris
Christie announced he will hold a summit and appoint a working group on
Atlantic City's future on Sept. 8, including state and local officials, casino
and labor leaders.
Revel announced it will close after just over two years amid
a rapid, unprecedented contraction of the Atlantic City gambling market. It
started the year with 12 casinos, but will have eight before fall.
The Showboat is set to close on Aug. 31, followed by Revel
on Sept. 10, and Trump Plaza six days later. The Atlantic Club closed in
January.
When the July revenue numbers are adjusted to exclude the
Atlantic Club, the year-over-year decline is 6.6 percent.
Revel posted the biggest decline, down more than 36 percent
to $14.8 million. It had warned in June that it might have to shut down if a
buyer could not be found.
Trump Plaza was down 34 percent to $5.3 million, and the
Showboat was down more than 19 percent to $15 million.
The Golden Nugget posted the biggest increase, up 40.5
percent to $18.2 million. The Tropicana was up more than 34 percent to $27.7
million.
So far in 2014, the casinos have taken in $1.55 billion.
That would have put Atlantic City on track to reverse a seven-year revenue
decline by the end of the year, boosted by Internet gambling. But the impending
closures of four casinos will prevent that.
Analysts say that despite the pain of losing millions in
revenue and nearly 8,000 casino jobs, the spate of closings should help the
remaining eight casinos do better with less competition.
The Internet gambling market continued to be dominated by
the Borgata, at nearly $3.2 million for the month, and Caesars Interactive,
close behind at $2.7 million. The Tropicana continues to ramp up its online
performance, taking in more than $1.9 million.
For the first seven months of the year, Internet gambling in
New Jersey has taken in $73.1 million. It began in late November last year.
Source: Philly.com
No comments:
Post a Comment