This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

NJ Revel Bankruptcy Plan Includes Allowing Smoking

By WAYNE PARRY

ATLANTIC CITY, N.J. (AP) â¿¿ When the smoke clears from Revel's bankruptcy ... there will be smoke.

Atlantic City's only smoke-free casino will soon allow patrons to light up on the gambling floor as part of the Chapter 11 bankruptcy filing it made late Monday night.

Allowing patrons to smoke is only one of several big changes the $2.4 billion resort is planning. Its bankruptcy filing read like a laundry list of mistakes and misfortunes that caused the much-heralded resort to struggle sine the day it opened last April.

Among the missteps cited by Dennis Stogsdill, Revel's chief restructuring officer, were a $100 million cost overrun it blamed on a contractor; the casino's failure to connect with day-trippers; too-expensive food and drinks, and the lack of a players' club. Closing for six days last fall for Superstorm Sandy didn't help, either.

"While Revel's resort and convention center segments have performed reasonably well in the first year of operations, the casino has struggled mightily to make headway with the traditional Atlantic City patron that does not stay overnight, an important segment of the customer base for any Atlantic City casino," he wrote in court documents. "Some of the debtors' early wounds were caused by third parties, others were due to an act of God. Still others, it must be acknowledged, were self-inflicted."

Stogsdill also said Revel botched its initial marketing efforts, calling them "not well-conceived and executed." It introduced itself with a widely broadcast television ad featuring a model disappearing into a suitcase, roasting a cupcake with a blowtorch, and a poolside guest wearing a bizarre mask.

Revel's bankruptcy filing lists $1.1 billion in assets and $1.5 billion in liabilities.

The casino says it plans to exit bankruptcy court by May 30. The restructuring will wipe out 82 percent of its $1.5 billion debt, leaving it with a manageable $272 million in debt.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs