Revel announces bankruptcy filing
http://www.pressofatlanticcity.com/alerts_breaking/revel-atlantic-city-s-newest-casino-to-file-for-chapter/article_72c16032-7af8-11e2-b5c5-001a4bcf887a.html
Quote: Press of ACExisting management will remain in place, no layoffs are planned, and employees and vendors will be paid as usual, the company said. The restructuring should be completed by early summer, it added.
Revel statement to customers:
Because we value your loyalty to Revel, we wanted you to be among the first to know about an announcement we made today.
As always, Revel's top priority is the guest experience, therefore we have reached an agreement with a majority of our lenders to significantly reduce our debt through a financial restructuring. This restructuring will improve cash flow to better support our day-to-day operations and future growth.
Rest assured that during this process we will continue to operate our business as usual, meaning your Revel card rewards, all guest loyalty plans and promotions will be honored, and upcoming events will proceed without change or interruption.
Revel was founded on the ability to provide a premier gaming experience as well as a world-class hotel and spa, restaurants helmed by award-winning chefs and outstanding shopping, nightlife and daylife. Such distinctive offerings are the reason why our resort has been recognized nationally for numerous accolades and sets us apart as a destination.
Revel's unique resort destination will continue to deliver on an experience unmatched in the Northeast. In March we have a lot of fun things planned starting with the Always Classic Corvette Giveaway hosted by Wayne Carini from Chasing Classic Cars. Join us at the Social at 11pm on Saturday, March 2nd to win a Chevy Corvette Convertible. Then on Saturday, March 9th. Revel will be giving away a Tahitian Beach Dream Vacation.
Once again, customer service and guest experience remain our top priorities. Our primary focus has not changed: our staff remains committed to providing a signature Revel experience for you and all of our guests.
We look forward to seeing you during your next visit to Revel.
Sincerely,
Darlene Monzo
Senior Vice President of Marketing
Quote: sodawaterPress of AC:
http://www.pressofatlanticcity.com/alerts_breaking/revel-atlantic-city-s-newest-casino-to-file-for-chapter/article_72c16032-7af8-11e2-b5c5-001a4bcf887a.html
Revel statement to customers:
Because we value your loyalty to Revel, we wanted you to be among the first to know about an announcement we made today.
As always, Revel's top priority is the guest experience, therefore we have reached an agreement with a majority of our lenders to significantly reduce our debt through a financial restructuring. This restructuring will improve cash flow to better support our day-to-day operations and future growth.
Rest assured that during this process we will continue to operate our business as usual, meaning your Revel card rewards, all guest loyalty plans and promotions will be honored, and upcoming events will proceed without change or interruption.
Revel was founded on the ability to provide a premier gaming experience as well as a world-class hotel and spa, restaurants helmed by award-winning chefs and outstanding shopping, nightlife and daylife. Such distinctive offerings are the reason why our resort has been recognized nationally for numerous accolades and sets us apart as a destination.
Revel's unique resort destination will continue to deliver on an experience unmatched in the Northeast. In March we have a lot of fun things planned starting with the Always Classic Corvette Giveaway hosted by Wayne Carini from Chasing Classic Cars. Join us at the Social at 11pm on Saturday, March 2nd to win a Chevy Corvette Convertible. Then on Saturday, March 9th. Revel will be giving away a Tahitian Beach Dream Vacation.
Once again, customer service and guest experience remain our top priorities. Our primary focus has not changed: our staff remains committed to providing a signature Revel experience for you and all of our guests.
We look forward to seeing you during your next visit to Revel.
Sincerely,
Darlene Monzo
Senior Vice President of Marketing
Quote: treetopbuddynothing about the Noodle Bar
Noodle bar is still a go! They were working on it Saturday and Sunday.
Quote: BhappyAccording to the article, it will reduce debt by 1 billion. So basically Kevin got more than 2 billion of FREE Money. One smart cookie.
Still $750 Million in debt. Only you and UKStages would find this as a positive. The numbers dont lie and they could not even pay the $20M Trump was sold for on their current revenue.
And while most of us on here understand the joke Bankruptcy is, it is not a positive in the general publics eye when the lead story on all the Philly stations is this news without details.
Kevin will be gone in the near future and no one will shed a tear.
Or again, do you and UK know more than the general AC gambling public who will not go back to this place. But then again, Revel doesnt want them because they are "nickle and dime" players, right?
Keep smiling and be happy!
Quote: Boz
Or again, do you and UK know more than the general AC gambling public who will not go back to this place. But then again, Revel doesnt want them because they are "nickle and dime" players, right?
Keep smiling and be happy!
Of Course I do......they are not only nickle & dime players they are also something for nothing players.
Quote: boymimboI wish I could declare bankruptcy, keep all of my stuff and just pay my creditors pennies on the dollars. I should start a large corporation and declare myself too important to fail.
Millions of Americans do just that. Thousands of lawyers make their livings on nothing other than helping those millions of Americans do just that. The rest of us make up for that money in higher fees for credit. Imagine what interest rates would be if there was no such thing as a default.
Ever hear of Chapter Seven?Quote: boymimboI wish I could declare bankruptcy, keep all of my stuff and just pay my creditors pennies on the dollars.
Quote: boymimboI wish I could declare bankruptcy, keep all of my stuff and just pay my creditors pennies on the dollars. I should start a large corporation and declare myself too important to fail.
Ah, but then you would be "owned" by third party lenders.
Hello, "equity for lenders."
Quote: teddysEver hear of Chapter Seven?
Isn't that liquidation? Chapter 13 is the "I just want to pay less" one. Apparently individuals with higher income and debts can even file chapter 11. Awesome.
Quote: treetopbuddyone more restructuring and their debt service will be 142 dollars a month
Sadly, I'm not sure they could even pay that much. The revenue they are reporting doesn't even appear to be enough to cover what must be huge operating costs. Much less paying down any debt.
Most bankruptcy courts will want you to file Chapter 13 if you can submit a plan. It is still a small percentage of individual bankruptcies -- most people still want to file Chapter 7 (the "I don't want to pay anything plan"). The government made it harder to file Ch. 7 by introducing the "means test" a couple years ago. They are trying to encourage more Ch. 13 filings.Quote: rdw4potusIsn't that liquidation? Chapter 13 is the "I just want to pay less" one. Apparently individuals with higher income and debts can even file chapter 11. Awesome.
I've never heard of any individual filing Chapter 11. It is almost exclusively corporate.
Quote: teddys
I've never heard of any individual filing Chapter 11. It is almost exclusively corporate.
There's a debt limit on Ch 13. It's high - around $300,000. So for those select few who fail to qualify for Ch7 and make & owe too much for Ch13, Ch11 is an option. Gotta make sure that everyone has a way to skirt their obligations:-)
Quote: treetopbuddythe Noodle Bar will pull Revel out of the tailspin....
That would be one hell of a Noodle Bar :)
Quote: vendman1That would be one hell of a Noodle Bar :)
Well hey, we know they don't want to attract gamblers. And they can't attract NYC club kids at a high enough rate, either. So the noodle bar may be their last best chance!
You have two choices:
1: Spend your energy to reduce your debt by whatever legal channels available to you.
2: Spend your energy by going after nick&dime players. You may double the revenues, but still won't be able to service the debt.
Only a bozo moran would go after choice # 2.
(hey Revel management did get more than 2 billion of free money)
or choice #3....blowup property and establish the largest Noodle Bar on the east coastQuote: BhappyWell imagine you are a Revel management. You know that your revenues are lackluster, and your debt load is extremely high.
You have two choices:
1: Spend your energy to reduce your debt by whatever legal channels available to you.
2: Spend your energy by going after nick&dime players. You may double the revenues, but still won't be able to service the debt.
Only a bozo moran would go after choice # 2.
(hey Revel management did get more than 2 billion of free money)
Quote: BhappyWell imagine you are a Revel management. You know that your revenues are lackluster, and your debt load is extremely high.
You have two choices:
1: Spend your energy to reduce your debt by whatever legal channels available to you.
2: Spend your energy by going after nick&dime players. You may double the revenues, but still won't be able to service the debt.
Only a bozo moran would go after choice # 2.
(hey Revel management did get more than 2 billion of free money)
OK, now the debt is reduced. They still have horrible revenues, and they're also facing the stigma of being bankrupt. So, now what? You're acting like the story is over, but this is still just the beginning...
Quote: rdw4potusThey still have horrible revenues, and they're also facing the stigma of being bankrupt. So, now what?
That "stigma" never bothered Donald Trump, not one of the three times that he was forced to use it.
It will become the latest in a long string of casinos that are owned and run by banks: Two-thirds of outstanding debt will be converted to equity in the property, although I doubt that two-thirds of Revel is worth a billion dollars anymore. The best news: “no layoffs are planned.” The most depressing news? “Existing management will remain in place.” That’s because Revel’s new owners are the same financiers who installed the hapless Kevin DeSanctis as chief restructuring officer, er, I mean as CEO. Throwing good money after bad, Revel lenders will fling another $45 million into this bottomless money pit. If Revel has to keep borrowing in order to pay the electric bill, there are some folks in the executive suite who damn well ought to be held accountable for this mess. Bringing in “hired gun” managerial talent would be preferable to keeping the architects of this calamity on the job.
.........
Thats the trouble with MBAs,,, they speak as one. Some MBA at the bank hires the restructure guy and arranges all this financing and continued financing and arranges the restructured debt but no one ever says "Kick those responsible out into the real world".
excellent take, FleaStiff......a little real world thinking never hurtsQuote: FleaStiffStiffs and Georges:
It will become the latest in a long string of casinos that are owned and run by banks: Two-thirds of outstanding debt will be converted to equity in the property, although I doubt that two-thirds of Revel is worth a billion dollars anymore. The best news: “no layoffs are planned.” The most depressing news? “Existing management will remain in place.” That’s because Revel’s new owners are the same financiers who installed the hapless Kevin DeSanctis as chief restructuring officer, er, I mean as CEO. Throwing good money after bad, Revel lenders will fling another $45 million into this bottomless money pit. If Revel has to keep borrowing in order to pay the electric bill, there are some folks in the executive suite who damn well ought to be held accountable for this mess. Bringing in “hired gun” managerial talent would be preferable to keeping the architects of this calamity on the job.
.........
Thats the trouble with MBAs,,, they speak as one. Some MBA at the bank hires the restructure guy and arranges all this financing and continued financing and arranges the restructured debt but no one ever says "Kick those responsible out into the real world".
Quote: SOOPOOMillions of Americans do just that. Thousands of lawyers make their livings on nothing other than helping those millions of Americans do just that. The rest of us make up for that money in higher fees for credit. Imagine what interest rates would be if there was no such thing as a default.
yes let's bring back debtor's prisons and workhouses
Quote: FleaStiffStiffs and Georges:
.........
Thats the trouble with MBAs,,, they speak as one. Some MBA at the bank hires the restructure guy and arranges all this financing and continued financing and arranges the restructured debt but no one ever says "Kick those responsible out into the real world".
Or perhaps the Revel lenders still believe in the vision of an integrated upscale resort.
Quote: BhappyOr perhaps the Revel lenders still believe in the vision of an integrated upscale resort.
Nothing wrong with the vision of an integrated upscale resort...just with the idiots who managed it so far.
Quote: SanchoPanzaThat "stigma" never bothered Donald Trump, not one of the three times that he was forced to use it.
Didn't it? I'd argue that it severely limited the marketability of the Marina and Plaza properties. So much so that they were sold at far below market value.
Quote: BhappyOr perhaps the Revel lenders still believe in the vision of an integrated upscale resort.
What a great idea! If Borgata, Sands, and Foxwoods didn't exist, there might even be room for one in the market!
Quote: sodawateryes let's bring back debtor's prisons and workhouses
Ah yes. John BOehNER's Indentured Servitude and Bankruptcy Reform Act of 2006.
Quote: rdw4potusDidn't it? I'd argue that it severely limited the marketability of the Marina and Plaza properties. So much so that they were sold at far below market value.
By the time of the last bankruptcies, Trump had been forced down to what at most could be called a barely peripheral role in the company. The reference was to the fact that he has never stopped parading himself and passing himself off as one of the great business minds of our time. The stark facts of his destruction and multiple bankruptcies have all too easily been forgotten by most.
Quote: BhappyWell imagine you are a Revel management. You know that your revenues are lackluster, and your debt load is extremely high.
You have two choices:
1: Spend your energy to reduce your debt by whatever legal channels available to you.
2: Spend your energy by going after nick&dime players. You may double the revenues, but still won't be able to service the debt.
Only a bozo moran would go after choice # 2.
(hey Revel management did get more than 2 billion of free money)
I am going to take your "Bozo" moron (not moran) quote as an attack on me, which I welcome. Lets face it, you are a Revel supporter, which are few and far between. So when looking at the opinions of most players on every public forum, you are in the minorty. So either you are a Revel plant, which are all over the web, or you are that person that actually believes a high end casino that states they only want high end players that expect less comps than the other 11 casinos in AC can actually work.
I hope you are smarter than that, or if not, tell Kevin I said "Hi".
Quote: Bozthey only want high end players that expect less comps than the other 11 casinos in AC can actually work.
But it doesn't even stop there. Revel also has worse comps than Sands and Sugarhouse and Foxwoods and Mohegan Sun and Dover Downs and Parx and Turning Stone. In order for players based outside of NJ to attend Revel, they have to basically have this discussion with themself:
"hey me"
"Hi Self! Congrats on earning all that money this month!"
"I was thinking we could go see some bums and stray cats in AC this weekend to celebrate."
"really? Why not just go play through the $1000 in free bets that Sands offered us?"
"But, but...Cats!!"
"Well, OK. I do like smelling bums. Let's drive past 3 other top-tier casinos to get to Revel in Atlantic City. That's a destination that I sure enjoy!"
"Hold on, wait. We're going to Revel?!? Didn't Borgata offer us 3 times more free stuff?"
"well, yes, but Revel is a destination of extraordinary distinction!"
"gah! OK. I guess the cats are on that side of town anyway..."
Seriously. Isn't this basically Revel's business plan?:
Too much competition, and too far for clubbers.
Now, if they could locate it on the west bank of the Hudson River, well boys and girls, the result would be different.
Quote: MrVThe flaw with building a classy casino/resort in Atlantic City is that it is in Atlantic City. Too much competition, and too far for clubbers.
Not to mention a place that cannot get its stuff together as far as basics like pleasant attitudes, user-friendly thoroughfares and sidewalks as wells as functional security, not to mention all the mayors and other officials who have gone to prison one right after another. Residents and denizens are pinning a lot of their hopes on the PokerStars and Merulio purchases, even though the Landry move has not exactly proved to be an overwhelming success. Can anyone offer odds on Kerkorian and the Hos?
Atlantic City reminds me of the Hillbilly Riveria without the twang.Quote: MrVThe flaw with building a classy casino/resort in Atlantic City is that it is in Atlantic City.
Too much competition, and too far for clubbers.
Now, if they could locate it on the west bank of the Hudson River, well boys and girls, the result would be different.
Hasn't happened.
AC is still a sh*t hole; one need not walk far from the casinos to see the contrasts and the potential dangers.
Sort of like the area around the Strat or downtown LV, but worse.
Time to reboot.
Quote: onenickelmiracleI may not think the Revel has been doing a good job of running the business, but their stumbles so far should not be a mark against AC. There are a lot of people who have never been there or have not been there in a long time and getting them to AC can be an opportunity for growth. There is nowhere else within 2,000 miles where someone can go with so many gambling opportunities all in one place and they have the ocean for free right off the boardwalk. AC has to market value to pull it off and competing business interests of the casinos will not allow it. This is where Christie has to come in to raise the minimum payback offerings and let it be about the possibility of winning. People will revolt against their local yokel casinos if the lure is there.
Well, not to be a jerk, but I have to call you out on your statement "There is nowhere else within 2,000 miles where someone can go with so many gambling opportunities all in one place and they have the ocean for free right off the boardwalk".
Biloxi, MS is 1,251 miles from Atlantic City.
It has 8 casinos all within 2 miles of each other.
Beau Rivage is as nice as anything in AC
Palace is new and non smoking (it is also not bankrupt)
They don't have the ocean, but they do have the gulf.
Table game rules are WAY more favorable in Biloxi, especially craps.
I won't even mention the attitudes of the staff.
That is the problem with AC. They still think they are the only real game on the east coast. And they will keep thinking that when there is nothing left in that town.
Quote: RaleighCrapsWell, not to be a jerk, but I have to call you out on your statement "There is nowhere else within 2,000 miles where someone can go with so many gambling opportunities all in one place and they have the ocean for free right off the boardwalk".
Biloxi, MS is 1,251 miles from Atlantic City.
It has 8 casinos all within 2 miles of each other.
Beau Rivage is as nice as anything in AC
Palace is new and non smoking (it is also not bankrupt)
They don't have the ocean, but they do have the gulf.
Table game rules are WAY more favorable in Biloxi, especially craps.
I won't even mention the attitudes of the staff.
That is the problem with AC. They still think they are the only real game on the east coast. And they will keep thinking that when there is nothing left in that town.
OK, maybe it's not 2000 miles... but come on. There's nothing on the east coast like AC. No one from Boston-NYC-Philly-DC-Baltimore is going to go to Mississippi to gamble. AC is still the only game in town when it comes to a destination resort. The problem is people are spending their gambling dollars on closer casinos in MD, DE, PA, NY, and CT. Those casinos may not be resorts or be so close to other casinos, but they are closer to home. And location is everything.
Location is such a big deal that even Vegas will eventually face the same problems as AC.
Quote: sodawaterOK, maybe it's not 2000 miles... but come on. There's nothing on the east coast like AC. No one from Boston-NYC-Philly-DC-Baltimore is going to go to Mississippi to gamble. AC is still the only game in town when it comes to a destination resort. The problem is people are spending their gambling dollars on closer casinos in MD, DE, PA, NY, and CT. Those casinos may not be resorts or be so close to other casinos, but they are closer to home. And location is everything.
Location is such a big deal that even Vegas will eventually face the same problems as AC.
If Vegas loses sight of customer service, and instead sees the people as walking bank accounts to pay any fee Vegas can think up, that is exactly what is going to happen to Vegas. I am more than happy to go to Vegas and think I can win money, all the while knowing I am going to lose it most of the time. I am not going to go to Vegas if I am paying fees all over the place. I don't need to be standing in Vegas to gamble. I can do that anywhere, and get better games at times as well.
I don't have any numbers to back me up, but I am fairly certain it is still the gamblers that are supporting that city. Sure the kids with their nightclubs are dropping a lot of coin, but I bet it pales to what the gamblers are doing. Piss the gamblers off with resort fees, lack of service, etc. and they will just stop coming.
Quote: sodawaterOK, maybe it's not 2000 miles... but come on. There's nothing on the east coast like AC. No one from Boston-NYC-Philly-DC-Baltimore is going to go to Mississippi to gamble. AC is still the only game in town when it comes to a destination resort. The problem is people are spending their gambling dollars on closer casinos in MD, DE, PA, NY, and CT. Those casinos may not be resorts or be so close to other casinos, but they are closer to home. And location is everything.
Location is such a big deal that even Vegas will eventually face the same problems as AC.
Turning Stone is absolutely a destination resort. So is Foxwoods. So is Mohegan Sun. I would argue that Sands is one as well. They're not near other casinos, but they're also higher quality than all but 2 to 4 (Borgata, Revel, maybe Harrah's and Caesars Palace) properties in AC.
And, FWIW, this guy from Philly goes to MS to gamble:-)
Quote: RaleighCrapsIf Vegas loses sight of customer service, and instead sees the people as walking bank accounts to pay any fee Vegas can think up, that is exactly what is going to happen to Vegas. I am more than happy to go to Vegas and think I can win money, all the while knowing I am going to lose it most of the time. I am not going to go to Vegas if I am paying fees all over the place. I don't need to be standing in Vegas to gamble. I can do that anywhere, and get better games at times as well.
I don't have any numbers to back me up, but I am fairly certain it is still the gamblers that are supporting that city. Sure the kids with their nightclubs are dropping a lot of coin, but I bet it pales to what the gamblers are doing. Piss the gamblers off with resort fees, lack of service, etc. and they will just stop coming.
Was lack of service really a problem in AC? No... AC was at its all time high in terms of casino win just a few years ago, and then NY, MD, DE, and PA all opened new casinos. And let's not forget about the depression in 2008, as well.
Aside from the mismanagement of the Revel and the abandonment of low-end properties caused by the shrinking market, I don't think poor customer service was AC's problem.
It's just a tough proposition to ask someone from Philly to drive by two or three of their own casinos to drive 90 minutes to AC.
And it will happen to Vegas as more and more people get casinos in their home areas. Vegas's saving grace, so far, is that it's so out in the middle of nowhere that people have to fly there and plan whole trips around flying there. AC wasn't really a place you flew to. It was more of an ad hoc decision to go, or at least not planned to the level of flights. That's why it was so vulnerable to local competition.
Quote: sodawaterThere's nothing on the east coast like AC. AC is still the only game in town when it comes to a destination resort.
Really?
Mohegan Sun cleans the clock of any of the older AC casinos.
Haven't been to Borgata or Revel yet, they may be comparable (?)
Quote: MrVReally?
Mohegan Sun cleans the clock of any of the older AC casinos.
Haven't been to Borgata or Revel yet, they may be comparable (?)
Mohegan Sun is nice, for sure. I would rank it behind Borgata, Revel, and Foxwoods, but that's not my point.
AC is itself a resort. It has beaches, a boardwalk, shopping, restaurants, sports games, concerts, etc, outside the casinos.
Mohegan Sun has a lot of that on site but otherwise it's in the middle of the woods off a CT highway.
Quote: rdw4potusQuote: sodawaterOK, maybe it's not 2000 miles... but come on. There's nothing on the east coast like AC. No one from Boston-NYC-Philly-DC-Baltimore is going to go to Mississippi to gamble. AC is still the only game in town when it comes to a destination resort. The problem is people are spending their gambling dollars on closer casinos in MD, DE, PA, NY, and CT. Those casinos may not be resorts or be so close to other casinos, but they are closer to home. And location is everything.
Location is such a big deal that even Vegas will eventually face the same problems as AC.[/q
Turning Stone is absolutely a destination resort. So is Foxwoods. So is Mohegan Sun. I would argue that Sands is one as well. They're not near other casinos, but they're also higher quality than all but 2 to 4 (Borgata, Revel, maybe Harrah's and Caesars Palace) properties in AC.
And, FWIW, this guy from Philly goes to MS to gamble:-)
How is the boardwalk there rdw4?
Honest inquiry.
Edit:
I'm from Williamstown, NJ. The AC boardwalk is not great, however, taking in the views can be worthwhile.
