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.
A special gambling panel charged with developing regulations for a future casino voted to recommend that New Hampshire legalize one casino with up to 5,000 video slots and 150 table games.
London is getting its first NFL day game, creating a morning time slot for the United States. The NFL says that the game between the Atlanta Falcons and Detroit Lions at Wembley on Oct. 26 will start at 1:30 p.m. local time, making it a 9:30 a.m. ET kickoff.
Total revenue from slot machines in Pennsylvania casinos is down more than 1 percent from a year ago. The Pennsylvania Gaming Control Board said revenue fell 1.3 percent in November compared to the same month in 2012.
Bob Christ’s Thursday NFL Football Breakdown | For the 14th time over the past two seasons, a home team is tagged as the underdog for a Thursday game. This time it’s the Houston Texans playing at the Jacksonville Jaguars in this Week 14 encounter.
Juniper Research says that over the next five years, the number of mobile and/or tablet owners using their devices to gamble will increase to 164 million people who will either place a bet, visit a mobile casino or buy a lottery ticket on their device in 2018.
- Follow GamingToday on Twitter
- Breakdown of NFL's bottom feeders
- GamingToday Sports Betting News
- Red Wings' Alfredsson receives salute in Ottawa
- Rebate ban still plan for Nevada race books
- GamingToday Play Free Video Poker
- Who is better 'Brooklyn' welterweight
- GamingToday Casino Games and Poker
- It's down to Conference titles in NCAA football
- Like GamingToday on Facebook