ATLANTIC CITY, NJ-The troubled Revel casino and hotel here that opened only last spring, has hired attorneys and bankers in possible preparation for a bankruptcy filing, according to published reports.
The resort, which owes $1.2 billion to creditors and took in less than $8 million in revenue last month, has hired the law firm Kirkland & Ellis and the investment bank Moelis and Co., according to a report originally published in the Wall Street Journal.
Sources tell the Wall Street Journal that Revel was considering a “prepackaged bankruptcy” that would have its creditors to agree to a restructuring in advance of a Chapter 11 filing.
The casino, in a prepared from its Chief Investment Officer Michael Garrity, states, “Revel has consistently worked to increase our financial flexibility, as evidenced by the additional capital we raised in December. We will continue to prudently evaluate various alternatives with regard to our capital structure.” See story in The Star Ledger.