New Jersey’s chief casino regulator says Revel has more than enough money to meet its financial obligations and is also taking steps to pay its construction contractors whatever they are owed.
David Rebuck , director of the state Division of Gaming Enforcement, said Revel has strengthened its financial stability by securing an additional $100 million in funding last week. Rebuck made his conclusions in a letter Monday to Bob McDevitt , president of Local 54 of UNITE-HERE, Atlantic City’s largest casino union. Rebuck wrote in response to McDevitt’s call last week for a formal investigation of Revel’s financial stability.
McDevitt, who has been battling with Revel over attempts to unionize its work force, questioned whether Revel is meeting the state’s financial stability regulations required of all Atlantic City casinos. McDevitt also noted that Revel is facing millions of dollars in construction liens and lawsuits filed by contractors that built the $2.4 billion megaresort.
Rebuck said his agency has been closely monitoring Revel’s finances ever since the casino opened April 2. He said the division increased its scrutiny when Revel reported a nearly $35.2 million operating loss in the second quarter.
“In the event that financial stability issues arise, the division, pursuant to its statutory duties, will take whatever action is warranted by the circumstances,” Rebuck wrote to McDevitt.
Rebuck, however, also said that Revel opened with enough money on hand and has since increased its financing by lining up $100 million in fresh credit. The credit deal was announced by Revel on Thursday, the same day McDevitt sent a letter to Rebuck asking for an investigation of the casino’s financial stability.
“In Revel’s case, the property commenced operations with sufficient cash and had access to other sources of liquidity to address its cash needs to date,” Rebuck told McDevitt. “As I am sure you are aware through public reports, Revel has arranged for greater (financial) capacity. Therefore Revel has increased its financial flexibility.”
Rebuck went on to say that the state has also kept an eye on Revel’s relationship with its contractors. Revel said it is in the process of conducting a routine, final audit before it pays its contractors everything they are owed.
Local 54 says Revel’s contractors have filed a series of construction liens and lawsuits seeking more than $30 million in payments. Local 54 spokesman Ben Begleiter said the latest filing, from Petrocelli Electric Co. , of Long Island, N.Y., is for nearly $3.3 million.
Rebuck said Revel’s audit will “ensure that all construction work has been satisfactorily completed and that there are no billing discrepancies.”
McDevitt released a statement Monday that indicated he was skeptical of Rebuck’s response.
“We keep hearing everything is OK at Revel, but the debts keep piling up,” McDevitt said. “Let’s just hope the workers don't have to pay for the company’s debts.”
Revel spokeswoman Maureen Siman declined to comment on Rebuck’s letter.
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