CAMDEN - Revel will be allowed to emerge from bankruptcy, allowing the 1-year-old megaresort to continue operating with more than $1 billion less in loans, a judge ruled this afternoon.
Some creditors had wanted Revel to set aside money that will be used to pay them in case the megaresort fails to turn around its business. But Judge Judith Wizmur ruled against the request saying it was not a legal requirement.
Revel officials said today they will have access to as much as $69 million in financing should its Chapter 11 case be approved regardless of whether it turns a profit.
Confirmation of the plan will allow Revel to access additional financing of $275 million in a term loan and up to $75 million in a revolving credit line, money the megaresort needs to compete in the upcoming summer tourist season.
Nearly all of those funds will be spent immediately after Revel emerges from bankruptcy with the exception of the approximately $69 million.
That additional money is contingent on certain factors but does not require Revel to turn a profit, Chief Restructuring Officer Dennis Stogsdill said, adding that the casino expects to increase its revenues through measures such as allowing smoking on the casino floor.
"Very shortly we will be converting the casino to smoking, which will increase revenue dramatically, " Stogsdill said.
Revel, which cost $2.4 billion to build, has consistently placed in the bottom third of the industry in gambling revenues and has yet to turn a profit, according to test data available from the Division of Gaming.
Revel filed for bankruptcy only a few months ago, opting to proceed with a prepackaged restructuring after getting creditors to agree to swap about $1 billion of loans for an equity stake in the company.