ATLANTIC CITY, N.J. (AP) — New Jersey's newest casino, Revel, says it plans to file for Chapter 11 bankruptcy in March to wipe out $1 billion in debt.
The Atlantic City casino said Tuesday that it had agreed with its lenders on a prepackaged bankruptcy filing, which will convert the debt into equity.
Many had hoped Revel would turn around Atlantic City's sagging fortunes when it opened in April. But the $2.4 billion casino never caught on as much as expected, and it remained mired toward the bottom of Atlantic City's 12 casinos in terms of casino revenue.
CEO Kevin DeSanctis calls the move a positive step to improve Revel's balance sheet.
Existing management will remain in place, and no layoffs are planned. Lenders will provide $45 million in new funding for the resort.