ATLANTIC CITY — Revel announced Monday, March 25, that in order to facilitate its previously announced financial restructuring, the company has filed its voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of New Jersey.
Being that the reorganization plan will reduce its debt by more than 82 percent, a super-majority of Revel’s lenders voted in favor the movement that will minimize a $1.52 billion debt to $272 million. If all goes according to plan, the restructuring should not affect Revel’s guests or guest services, entertainment and events will carry on as scheduled, and the status and wages of Revel employees will feel no impact.
“Backed by overwhelming lender support, we remain on track to complete our financial restructuring ahead of the critical summer season,” said Jeffrey Hartmann, Revel’s Interim CEO, in a media release regarding the announcement. “We will emerge from this recapitalization positioned for long-term success, with the financial capacity to pursue our amenity enhancement opportunities, and the ability to continue providing our guests with a signature Revel experience.”
Approximately $250 million in debtor-in-possession financing (DIP) will be provided by some of Revel’s lenders, in addition to the approximate $42 million constituting of new money commitments, and approximate $208 million constituting pre-petition debt. Revel will additionally obtain $335 million in exit financing, which will provide the resort with working capital, fund certain capital expenditures, repay the DIP financing, and pay expenses related to the restructuring upon emerging from Chapter 11.
The restructuring is expected to be complete within 45 to 60 days and emergence from Chapter 11 by early summer. — Casey Harper