Check out our newest writers in Fantasy Sports!

HOT Stories more

Smoking banned in New Orleans bars and gambling halls

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

International Game Technology (IGT) reported fiscal first-quarter earnings of $35 million. On a per-share basis, the Las Vegas-based company said it had net income of 14 cents. Earnings, adjusted for one-time gains and costs, were 19 cents per share.

We asked the bookies who they thought would be dominant in the books. Take a look!

Remembering... | Installment 4 in Gaming Today’s look back at 40 years of service takes us to the last week in January of 2005. 

Across the Board | The 16th annual National Handicapping Championship was completed Sunday evening, and I strongly believe an important mistake is being made.

Pokin' Around | It’s Ed Malinowski by day, Hugh Citron by night, power lunches and a quality staff in between. That’s what makes the Stratosphere revolve, especially during Super Bowl week.

GamingToday subscription ad

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology