What Revel's Bankruptcy Will Mean For Casino, A.C. & You
Posted:
Updated:
ATLANTIC CITY, N.J. -
It opened for business less than a year ago, but now Revel is filing for Chapter 11 bankruptcy protection in March.
Atlantic City's newest, $2.4-billion casino is nearly a billion bucks in debt.
Gov. Chris Christie said Wednesday that he still has faith in Revel.
"So those people who were owed debt now are taking ownership in the hotel. They're showing their faith and confidence in the concept and in the future of Atlantic City by not walking away and closing the place down but by in fact saying, 'We're going to take the money that we're owed and instead we'll take stock in the company,'" Christie said.
What does filing for bankruptcy mean for the future of the Revel hotel, resort and casino?
Also, what should you do if a business you frequent files for bankruptcy? Should you still book a room, a bachelor party or a wedding there?
Financial expert Dan Roccato, of Quaker Wealth Management, joined "Good Day" on Thursday morning to talk about Revel's future.
Revel's revenue was only $8 million in January. But Roccato said it's not the first casino to get in trouble. Trump Plaza just sold for $20 million, Golden Nugget sold for $38 million, and Tropicana is in bankruptcy.
Bankruptcy does not always mean shutting your doors, Roccato explained. It gives Revel a lifeline – lenders agree to reduce debt in exchange for ownership – and it allows it to stay open.
Revel can operate for some time in bankruptcy, as long as the owners put cash in. Roccato noted that Trump and Tropicana used bankruptcy to rebuild.
As for tips for planning an event there, Roccato said don't pre-pay 100 percent for the room fee or event, and avoid booking the event too far in advance, like two years. If that's not possible, negotiate a graduated deposit payment.
And Roccato offered more tips during the interview. You can hear those by watching the video clip above.
Sunday, May 19 2013 9:39 PM EDT2013-05-20 01:39:10 GMT
A text message that says "I'm about to leave" is the last time Janet Royer had contact with her son Thursday night. "It's like a nightmare, it's the worst nightmare anyone can think of. I keep thinking
A text message that says "I'm about to leave" is the last time Janet Royer had contact with her son Thursday night.
"It's like a nightmare, it's the worst nightmare anyone can think of. I keep thinking I'm going to wake up.. This is horrible" said Royer.
Sunday, May 19 2013 7:32 PM EDT2013-05-19 23:32:42 GMT
It was a gloomy Sunday as the whole area remain socked in with low clouds & fog, drizzle and scattered showers.
The weather remains unsettled through most of the work week. The difference is that it will really warm up -- temperatures soar into the 80s by Tuesday. That mild and humid air mass will fuel afternoon thunderstorms.
By Thursday a cold front moves by bringing more rain. It will also bring drier and cooler weather by Friday as we finally clear out.
Sunday, May 19 2013 5:27 PM EDT2013-05-19 21:27:52 GMT
Pounding winds and violent surf from Hurricane Sandy left their mark on Ocean City, NJ. Beaches were washed out and there's concern about debris washing up. But Mayor Jay Gillian says no need to worry.
Mayor of Ocean City says no need to worry about debris filled beaches after Hurricane Sandy. He says plans have been taking place to make sure they're safe and clean.
Sunday, May 19 2013 5:25 PM EDT2013-05-19 21:25:28 GMT
The Pennsylvania State Police are searching for 21-year-old Matthew Royer, who went missing after leaving his apartment at the University of Rhode Island. Police says Royer left his college apartment
The Pennsylvania State Police are searching for 21-year-old Matthew Royer, who went missing after leaving his apartment at the University of Rhode Island. Police says Royer left his college apartment
Sunday, May 19 2013 8:20 AM EDT2013-05-19 12:20:57 GMT
Finding a job without a college degree can be a difficult task, even if you're a war veteran. Now, they have the opportunity to turn their military training into college credits.
Finding a job without a college degree can be a difficult task, even if you're a war veteran. Now, they have the opportunity to turn their military training into college credits.
Sunday, May 19 2013 7:58 AM EDT2013-05-19 11:58:46 GMT
Once hailed as a hero after surviving a shotgun blast to his face in 2007, a former police officer is now charged with raping and sexually assaulting two women at gunpoint he met at a party.
Once hailed as a hero after surviving a shotgun blast to his face in 2007, a former police officer is now charged with raping and sexually assaulting two women at gunpoint he met at a party.
Sunday, May 19 2013 1:45 AM EDT2013-05-19 05:45:51 GMT
A Powerball jackpot-winning ticket worth an estimated $590.5 million was sold in Florida, but there were also million-dollar winners sold in Pennsylvania and New Jersey, according to the lottery.
A Powerball jackpot-winning ticket worth an estimated $590.5 million was sold in Florida, but there were also million-dollar winners sold in Pennsylvania and New Jersey, according to the lottery's website.
Friday, May 17 2013 11:44 PM EDT2013-05-18 03:44:01 GMT
A couple of Good Samaritans helped rescue a 3-year-old boy's lifeless body from an Allentown creek. Their quick thinking and help from police helped bring the boy back to life.
A couple of Good Samaritans helped rescue a 3-year-old boy's lifeless body from an Allentown creek. Their quick thinking and help from police helped bring the boy back to life.
