HOT Stories more

Georgia gambling talks scheduled

Article

$2.4 billion Revel worth only $246-$331 million

March 25, 2013 7:11 PM by Ray Poirier

How quickly billions of dollars can disappear because of a bad investment made in a bad time. Certainly the gaming industry has seen its share since the beginning of the 2007 recession. Just on the Las Vegas Strip, investors can see the remains of the Echelon, the Fontainblue, or the empty space that was once the New Frontier.

Atlantic City has seen several of its Boardwalk casinos and real estate parcels being sold for a fraction of their original costs. And now it is looking at the biggest failure of all, the Revel.

The city’s newest casino, built at a cost of some $2.4 billion, is filing for bankruptcy less than a year since its troubled opening. Unable to generate enough cash flow to meet its obligations, the property reportedly has filed a 400-page disclosure statement that it sent to creditors as part of the prepackaged bankruptcy plan.

According to a story in The Press of Atlantic City, the filing places the value of the property at just a fraction of its original cost.

The bankruptcy plan lists its debt at about $1.5 billion and calls for converting about $1 billion of that into equity, leaving it with $272 million in debt.

The debtors believe the plan, which contemplates a significant deleveraging, is in the “best interest of all creditors,” the disclosure form said. “Any other alternative does not in any way realize or recognize the value inherent under the plan.”

So how much is Revel worth today?

The company estimates that if it were sold within the next six months it would fetch between $246 million and $331 million.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at RayPoirier@GamingToday.com.

Like GamingToday on Facebook GamingToday on Facebook      and        Follow GamingToday on Twitter GamingToday on Twitter

top stories

Macau casino revenues plunged 35.5 percent during August compared to the same month a year ago. August was the 15th month in a row of double digit decreases, a slide that began with the Beijing government’s crackdown on corruption.

NFL Previews | This is the 24th of 32 pro football preseason previews leading up to the NFL football season opener Thursday, September 10. On deck, Atlanta Falcons.

The St. Louis Cardinals shoot for their fifth straight victory and a three-game sweep of the visiting Washington Nationals when the two teams collide tonight at Busch Stadium. All-Stars Michael Wacha and Max Scherzer meet.

NFL Previews | This is the 23rd of 32 pro football preseason previews leading up to the NFL football season opener Thursday, September 10. On deck, Buffalo Bills.

V.I.P. Getting Rich with Saber | FREE PREVIEW! Let’s talk about dogs! GamingToday is having a free, yes free, NFL football contest online. Everyone is invited to get in. The contest is sponsored by the Stratosphere...

Stratosphere Real Deals for Real People

Check out our writersCheck out our writers

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology