[CORRECTION - 9:04 a.m. EST] The title has been edited to express the casino's plans to proceed in filing for Chapter 11. No filing has been submitted as of yet.
Atlantic City's newest casino, Revel, announced that it will file for Chapter 11 bankruptcy protection in March, less than a year after it opened.
The prepackaged bankruptcy will eliminate about two-thirds of its $1.5 billion debt by converting more than $1 billion of it into equity for lenders.
Revel's CEO Kevin DeSanctis added that the restructuring will give the casino resort more flexibility to operate.
"Today's announcement is a positive step for Revel," said DeSanctis. "The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility."
Union reps predicted that the ritzy casino and resort would go under being that it remained largely unionized. Local 54 of the Unite-HERE President union Bob McDevitt said, "Over three years ago, Local 54 began expressing to every elected official in the city, the state and the governor's office that this project was doomed to failure. Had they listened to us three years ago, we would not have this catastrophe on our hands now."
However, NJ Gov. Chris Christie's press secretary showed confidence in revitalizing Revel.
"We are committed to the resurgence of Atlantic City, the tourism district, and the many efforts currently under way to bring world-class attractions and entertainment to the city," said Michael Drewniak. "A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations as a premiere hotel, gaming and top-flight entertainment hub for the city, in addition to employing more than 2,000 people. Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City's expansion."
David Rebuck, director of the state Division of Gaming Enforcement, also said the Chapter 11 filing will help the casino get its finances in order.
"The agreement between Revel and its lenders will allow for a necessary financial restructuring and improve the property's financial condition going forward. We see this as a positive step that will allow Revel to comprehensively address its financial needs while continuing normal business operations."