Revel Receives Court Approval for $250MM DIP Financing
Revel AC announced in a news release that the US Bankruptcy Court for the District of New Jersey (Camden) entered a final order to approve Revel’s approximate $250 million DIP financing to help support and maintain its day-to-day operations throughout its previously announced financial restructuring. Approximately $42 million of the DIP financing constitutes new money commitments and approximately $208 million constitutes prepetition debt.
Additionally, the bankruptcy court granted final orders to the motions approved during the first day hearings on March 27, 2013. These orders enable Revel to continue paying employee wages and benefits, taxes, insurance, and vendors in the ordinary course of business, as well as honor outstanding customer loyalty cards, programs and obligations, and continue using its existing bank accounts in the ordinary course of business.
In addition to these orders, Judge Judith Wizmur also approved a settlement with the City of Atlantic City, which wholly resolves a prepetition property tax dispute.
Jeffrey Hartmann, Revel’s interim chief executive officer, commented on today’s hearing, “The final orders granted today are another positive milestone in our financial restructuring. We look forward to emerging from this process positioned for long-term success with a right-sized balance sheet, greater casino floor appeal, and the ability to continue providing our guests with a personalized Revel experience.”
Revel’s prepackaged Chapter 11 plan will reduce Revel’s debt by over 82% upon court approval. The restructuring is not expected to impact Revel’s guests, employees or vendors. Throughout the restructuring, Revel intends to continue normal business operations. All services, guest loyalty plans and promotions, dining, scheduled entertainment, programming and events will continue to move forward without change or interruption. The company expects to emerge from Chapter 11 by early summer.
In a related Bloomberg article, Revel also reportedly asked a judge to disband an official committee of unsecured creditors. The article said that the casino called its potential oversight unnecessary.
To read the entire Bloomberg story, click here.
Previously on abfjournal.com: