No Smoking Revel Going Up in Smoke with Bankruptcy
Simply days short of a 12 months since it started to fanfare that is great Atlantic City’s no smoking casino experiment Revel is looking to declare bankruptcy, based on federal securities regulators’ disclosure statements the casino filed earlier this week. Through the miracle of high finance sleight-of-hand, some $1.5 billion in staggering debt will now be converted into $1 billion in equity for the casino’s eager creditors, and a new CEO, Jeffrey Hartman (previously of the Mohegan Sun in Connecticut) takes over the reins with this faltering mare.
Resignations Are a deal that is good
Hartman gets control of for recently departed Walk of Shamers ex-CEO Kevin deSanctis and Chief Investment Officer Michael Garrity; thankfully, this is not Japan, or there would be entrails that are intestinal the penthouse to the parking lot by now. Nope, this is America, the place where a smartly negotiated contract when you sign up gets you a well-paid trip when you’re axed; so DeSanctis and Garrity not just reach stay on with the Revel brand, they are able to also look forward to about $7 million in consulting charges for the rest of the year. Is that each or together? We’re maybe not certain, but our hat goes off to their lawyers: well-played, counselors, well-played!
Although Atlantic City overall was in a nosedive that is financial (attributed to everything from Hurricane Sandy to an uncertain marketing platform for conventi