Thursday, October 23, 2014
Inquirer Daily News

Revel casino auction postponed for a week

Aerial view of the Atlantic City skyline looking south from the Revel Casino.
Aerial view of the Atlantic City skyline looking south from the Revel Casino. Gregg Kohl
ATLANTIC CITY - The bankruptcy auction of the troubled Revel casino hotel, which had been scheduled for Thursday, has been postponed until next week.

Lawyers for the casino said in a court filing Wednesday night that they had received multiple bids for the casino by Monday's deadline and needed additional time to review them.

The auction was rescheduled for 9 a.m. next Thursday.

Atlantic City Mayor Don Guardian said last month that there were six potential buyers for the casino, but none of the potential bids have been outlined.

Moelis & Co., the investment firm hired to find buyers, said in a court filing that it reached out to more than 130 parties, including gambling operators, hotel operators, and other investors. The firm is also reviewing bids and researching buyer backgrounds, according to the description of its work included in the filings.

Revel is the city's newest casino and cost $2.4 billion to build. It opened in April 2012, but has declared bankruptcy twice. The casino has said it would close if a buyer was not found and approved.

Last week, a bankruptcy judge approved a bonus plan that could pay a total of $1.75 million to Revel executives.

Two other casinos, Showboat Atlantic City and Trump Plaza Hotel & Casino, have announced plans to close, Showboat at the end of the month and Trump Plaza in mid-September. The Atlantic Club closed in January.

The four casinos have employed about 8,900 workers in total, nearly a third of Atlantic City's workforce.

Gambling analysts have said that Atlantic City has too many casinos and too little demand, and must reduce gambling supply to stabilize itself.

The resort has lost nearly half its gaming revenue since 2006 to surrounding states that opened casinos, including Pennsylvania, New York, and, more recently, Maryland.

Associated Press