News INTERNATIONAL UPDATE A new chapter for Revel in AC


The ‘game-changer’ as Revel was called at launch, files for bankruptcy protection in the US


Revel, the Atlantic City property that New Jersey pinned its hopes on, will file for Chapter 11 bankruptcy protection in March, less than a year after it opened. The deal will clear about two-thirds of Revel’s US$1.5bn debt by converting more than $1bn of it into equity for lenders.


Revel, described as a ‘game changer’ when it opened, has confirmed it has reached an agreement with a majority of its lenders to significantly reduce its debt through a debt-for-equity conversion and voluntary, prepackaged Chapter 11.


The restructuring is not expected to impact Revel’s guests, employees and vendors. Throughout the restructuring, Revel intends to continue normal business operations. All services, dining, scheduled entertainment, programming and events will move forward without change or interruption, and employees and vendors will be paid in the normal course of business.


“The agreement


Kevin DeSanctis, Revel's Chief Executive Officer, said: “The announcement is a positive step for Revel. The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility.”


After undertaking a comprehensive strategic review of restructuring alternatives, the company determined that a prepackaged Chapter 11 would offer the best opportunity for Revel to strengthen its balance sheet and would provide it with the financial flexibility and resources to invest in the growth of the business.


Revel’s lenders will provide approximately $250m in debtor-in-possession financing (DIP), approximately $45m of which constitutes new money commitments and approximately $205m of which constitutes pre-petition debt. No tax payer funds will be used to finance the restructuring.


Michael Garrity, Revel’s Chief Investment Officer, added: “The reduction of debt service expense this agreement facilitates will greatly improve Revel’s cashflow to better support day-to-day operations. This restructuring positions Revel for long-term success by providing the company with the operational flexibility to invest in the growth of our business.”


March 2013 PAGE 16


between Revel and its lenders will allow for a


necessary financial restructuring and improve the


property's financial condition going


forward. We see this as a positive


step that will allow Revel to


comprehensively


address its financial needs while


continuing normal business


operations.” DAVID REBUCK,


Director of the State Division of Gaming Enforcement.


The $2.4bn casino has already secured two rounds of additional financing since August 2012 to stay above water.


January saw its second-worst month of GGR, winning less than $8m from gamblers. The second and third quarters of 2012 saw losses of $35m and $37m


Whilst condemned by local work unions, the move was heralded as ‘necessary’ by the town’s politicians.


Bob McDevitt, President of Local 54 of the Unite-HERE union, said: “Over three years ago, Local 54 began expressing to every elected official in the city, the state and the governor's office that this project was doomed to failure. Had they listened to us three years ago, we would not have this catastrophe on our hands now."


Michael Drewniak, Governor Chris Christie's press secretary, however believes Revel will still turn things around.


“We are committed to the resurgence of Atlantic City,” said Mr. Christie, “the tourism district, and the many efforts currently under way to bring world-class attractions and entertainment to the city. A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations as a premiere hotel, gaming and top-flight entertainment hub for the city, in addition to employing more than 2,000 people. Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City's expansion.”


IL CASINÒ GALA DI DUNDEE, IN Scozia, chiuderà il mese prossimo; pros- eguono frattanto le trattative tra la società e i membri del personale, iniziate dopo che i padroni hanno comunicato l’immi- nente liquidazione della struttura. Il con- siglio comunale di Dundee ha concorda- to il pagamento di 8,5 milioni di sterline per l’acquisto del casinò Gala e dell’hotel Hilton nel quadro del progetto di restauro del lungofiume. Non si sa ancora quanti lavoratori saranno interessati dalla chiusura né quali siano i progetti di Gala riguardo alla licenza.


GLI ULTIMI RAPPORTI DA TAIWAN lasciano intendere che il casinò di Matsu, una delle catene di isole remote, potrebbe essere pienamente operativo verso la fine del 2017, mentre il ministero si occuperà di selezionare investitori qualificati per la fine del 2014. Il vicemi- nistro amministrativo per il trasporto e le comunicazioni, Chen Chien-yu, ha ammesso che Taiwan non ha esperienza nell’apertura di casinò e ha affermato che il governo si rivolgerà ad investitori internazionali affinché sovrintendano al progetto. Diversi operatori che riuniscono le qualifiche si stanno mostrando interes- sati al progetto; tra questi, la società immobiliare specializzata in resort Weidner Resorts Taiwan, Las Vegas Sands e MGM Resorts.


IL GRUPPO SBE ENTERTAINMENT, CON sede a Los Angeles, ha dato inizio ai lavori volti a trasformare l’ex hotel Sahara, situato all’estremità nord del Las Vegas Strip, nell’SLS Las Vegas Hotel & Casino, un’operazione da 415 milioni di dollari. Ha intenzione di aprire nell’autun- no del 2014 con oltre 1.600 camere, un casinò, quattro locali notturni e una filiale di poco meno di 930 metri quadrati del famoso negozio di abbigliamento di Los Angeles Fred Segal.


MANUEL VALLS E JÉRÔME CAHUZAC, rispettivamente ministri dell’interno e delle finanze, hanno firmato un nuova legge che permette ai casinò francesi di ampliare gli orari di apertura per le slot machine anche se le sezioni dei giochi da tavolo hanno già chiuso. La nuova legge, che è entrata in vigore il 22 feb- braio, stabilisce che i giochi da tavolo devono essere gestiti da personale e devono restare aperti per almeno sei ore al giorno se uno stabilimento ha più di 75 slot e per quattro ore se in servizio ci sono 75 slot o meno.


RANK GAMING INTENDE ANDARE avanti con il progettato acquisto della rivale Gala, ora che la commissione sulla concorrenza ha approvato l’operazione a condizione che i casinò di Aberdeen, Stockton-on-Tees, Bristol e Cardiff non rientrino nel pacchetto.


REVEL, LA PROPRIETÀ DI ATLANTIC City su cui il New Jersey aveva sostenuto le sue speranze, presenterà richiesta di protezione fallimentare ai sensi del Capitolo 11 a marzo, meno di un anno dopo l’apertura. L’accordo cancellerà circa due terzi del debito di Revel, pari a 1.500 milioni di dollari, trasformando oltre 1.000 milioni di dollari in partecipazioni per i prestatori.


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