No Smoking Revel Going Up in Smoke with Bankruptcy
Simply times in short supply of a year as it exposed to great fanfare, Atlantic City’s no smoking casino experiment Revel is looking to declare bankruptcy, centered on federal securities regulators’ disclosure statements the casino filed earlier this week. Through the magic 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 (formerly of the Mohegan Sun in Connecticut) will take over the reins with this faltering mare.
Resignations Are Really a Good Deal
Hartman gets control of for recently departed Walk of Shamers ex-CEO Kevin deSanctis and Chief Investment Officer Michael Garrity; thankfully, this isn’t Japan, or there is abdominal entrails from the penthouse towards the parking lot by now. Nope, this is America, the place where a smartly negotiated contract when you sign up gets you a ride that is well-paid you’re axed; so DeSanctis and Garrity not only arrive at stick to with the Revel brand, they could 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 sure, 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 ambiguous marketing platform for conventions), some…