Boz
Boz
Joined: Sep 22, 2011
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August 11th, 2014 at 12:15:10 PM permalink
Quote: vendman1

WOW....I really thought the reason CET was closing Showboat was to bid on REVEL. They were basically going to trade an aging casino for a shiny new one. Made sense to me. I can't believe there wasn't one qualified bid. Wonder what a "qualified" bid would be. When I was there only a couple of weeks ago the employees seemed very optimistic that a buyer was going to emerge. Word on the street was either CET or Hard Rock.



Any bid CZR put in, which I am sure they did, was like the PH in Vegas purchase. That is an assumption of debt with no cash outlay. They dont have cash to spend but always try to use their holdings to make purchases. But those days are over and their assuming your debt is a good chance you wont get paid.
vendman1
vendman1
Joined: Mar 12, 2012
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August 11th, 2014 at 12:38:43 PM permalink
Quote: Boz

Any bid CZR put in, which I am sure they did, was like the PH in Vegas purchase. That is an assumption of debt with no cash outlay. They dont have cash to spend but always try to use their holdings to make purchases. But those days are over and their assuming your debt is a good chance you wont get paid.



Good point I suppose. But CET is a big company. I know they are massively in debt. But I think you could buy revel for like $100 million, maybe less. If they had half down or even a third down...I'm sure they could finance the rest, no matter how bad their balance sheet is. I'm sure they could come up with 30-50 million dollars. The place cost 2.4B to build it has to be worth something.

In addition, the bankruptcy courts main goal is to get the creditors as much money as possible. Isn't any money from a buyer, worth the NO money they will generate if they shutter the doors. I would think a competent owner/operator could make enough from the property to at least cover the day to day operating costs. But maybe I'm wrong.
EvenBob
EvenBob
Joined: Jul 18, 2010
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August 11th, 2014 at 12:51:11 PM permalink
What an article. 4 casinos will close this year,
3000 out of work for Revel alone. AC gets a
29% property tax increase (29%!) because
of the casinos, and the casinos that are left
are worth half of what they were recently.

Stick a fork in AC, it's done.. It will be amazing
if Revel stays open the rest of Aug. From what
Ace reports on weekend attendance, they aren't
even making enough to do the payroll.
"It's not enough to succeed, your friends must fail." Gore Vidal
rxwine
rxwine
Joined: Feb 28, 2010
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August 11th, 2014 at 1:12:58 PM permalink
mon·ey pit
an ongoing drain on financial resources

It could be the finest homeless shelter in the world.

The Hall of Unverified Claims is a vast place with many shelves.
7star4now
7star4now
Joined: Jul 8, 2013
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August 11th, 2014 at 5:07:20 PM permalink
Quote: vendman1

WOW....I really thought the reason CET was closing Showboat was to bid on REVEL. They were basically going to trade an aging casino for a shiny new one. Made sense to me. I can't believe there wasn't one qualified bid. Wonder what a "qualified" bid would be. When I was there only a couple of weeks ago the employees seemed very optimistic that a buyer was going to emerge. Word on the street was either CET or Hard Rock.



Here's your answer from the "horse's mouth" today:

"Gary Loveman, chief executive officer of Caesars Entertainment Corp. (CZR), said no qualified bidders have emerged for the bankrupt Revel hotel and casino in Atlantic City.The absence of qualified bidders for the New Jersey property “suggests that even at a de minimis price, people are finding it hard to imagine they can make money operating the Revel,” Loveman said today on a conference call, without specifying where he got the information."

(of course many of us would argue, if a certain horse's lips are moving, he is either chewing hay - or lying thru his teeth)

http://www.bloomberg.com/news/2014-08-11/caesars-ceo-loveman-says-no-qualified-bidders-for-revel.html
vendman1
vendman1
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August 11th, 2014 at 7:41:05 PM permalink
Quote: 7star4now

Here's your answer from the "horse's mouth" today:

"Gary Loveman, chief executive officer of Caesars Entertainment Corp. (CZR), said no qualified bidders have emerged for the bankrupt Revel hotel and casino in Atlantic City.The absence of qualified bidders for the New Jersey property “suggests that even at a de minimis price, people are finding it hard to imagine they can make money operating the Revel,” Loveman said today on a conference call, without specifying where he got the information."

(of course many of us would argue, if a certain horse's lips are moving, he is either chewing hay - or lying thru his teeth)

http://www.bloomberg.com/news/2014-08-11/caesars-ceo-loveman-says-no-qualified-bidders-for-revel.html



If Gary Loveman said it was raining and windy during a Hurricane, I'd look out the window to make sure. I'd still bet he's angling for an even lower price. Maybe buying it from the city for very little, when they forclose for unpaid property taxes or something.
7star4now
7star4now
Joined: Jul 8, 2013
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August 12th, 2014 at 6:12:09 AM permalink
Atlantic City's Revel Casino says it will close next month after failing to line up a buyer.

The company announced the move Tuesday, saying it would close its doors Sept. 10.

The $2.4 billion casino opened just over two years ago, and never turned a profit.

It was due to be sold at a bankruptcy court auction last week. But that auction was postponed until Thursday to allow casino officials to study bids that were received.

But after Revel's board met Monday, the decision was made to shutter the iconic glass-covered casino at the north end of the Boardwalk.

http://www.castanet.net/edition/news-story-120820-6-.htm

Revel said it still hopes to find a buyer through the bankruptcy process. But it acknowledged that if that happened, it would be after the facility had already shut down.
“We hope that Revel can be a successful and vital component of Atlantic City under a proper ownership and reorganized expense structure,” the company said. “We will continue to endeavor toward a placement with such an owner, but there can be no assurance as to the outcome of the pending bankruptcy process.”

http://nypost.com/2014/08/12/revel-casino-to-close-doors-adding-to-acs-gambling-woes/
aceofspades
aceofspades
Joined: Apr 4, 2012
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August 12th, 2014 at 7:40:31 AM permalink
Quote: 7star4now

Atlantic City's Revel Casino says it will close next month after failing to line up a buyer.

The company announced the move Tuesday, saying it would close its doors Sept. 10.

The $2.4 billion casino opened just over two years ago, and never turned a profit.

It was due to be sold at a bankruptcy court auction last week. But that auction was postponed until Thursday to allow casino officials to study bids that were received.

But after Revel's board met Monday, the decision was made to shutter the iconic glass-covered casino at the north end of the Boardwalk.

http://www.castanet.net/edition/news-story-120820-6-.htm

Revel said it still hopes to find a buyer through the bankruptcy process. But it acknowledged that if that happened, it would be after the facility had already shut down.
“We hope that Revel can be a successful and vital component of Atlantic City under a proper ownership and reorganized expense structure,” the company said. “We will continue to endeavor toward a placement with such an owner, but there can be no assurance as to the outcome of the pending bankruptcy process.”

http://nypost.com/2014/08/12/revel-casino-to-close-doors-adding-to-acs-gambling-woes/



I'm glad I used up all my resort dollars!
vendman1
vendman1
Joined: Mar 12, 2012
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August 12th, 2014 at 7:44:39 AM permalink
Quote: aceofspades

I'm glad I used up all my resort dollars!



Last time I was there (about 2 weeks ago) I splurged on a fancy dinner with my wife...just to use all of ours. Great minds think alike.
aceofspades
aceofspades
Joined: Apr 4, 2012
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August 12th, 2014 at 7:46:51 AM permalink
Quote: vendman1

Last time I was there (about 2 weeks ago) I splurged on a fancy dinner with my wife...just to use all of ours. Great minds think alike.




I got some nice button downs at Hugo Boss

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