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Auction to save Atlantic City's Revel casino postponed a week
August 7, 2014 / 1:55 PM / 3 years ago

Auction to save Atlantic City's Revel casino postponed a week

Aug 7 (Reuters) - The bankrupt Revel Casino Hotel in Atlantic City, New Jersey, has postponed an auction of the 1,400-room property by a week to Aug. 14 to allow more time to evaluate bids, according to a court filing late on Wednesday.

Revel has said that if it does not find a buyer for the hotel and casino complex, which dominates Atlantic City’s skyline, the property will close. It has notified its 3,140 workers they may lose their jobs as soon as Aug. 18.

The postponement notice filed with U.S. Bankruptcy Court in Camden, New Jersey, did not identify bidders, or say how many qualified bids Revel had received. There is no initial, or stalking horse, bidder for the auction.

“The debtors still need additional time to fully analyze and evaluate the bids received and are not prepared to go forward with the schedule auction,” the filing said.

The auction is now scheduled for Aug. 14 at 9 a.m. EDT (1300 GMT) at the New York law offices of White & Case, the firm that represents the casino’s owner, Revel AC Inc. The auction is closed to the public.

Revel filed for its second bankruptcy in June, and also filed for Chapter 11 in March 2013.

The resort cost $2.4 billion to build and opened in April 2012. It was a centerpiece of New Jersey Governor Chris Christie’s effort to bring Las Vegas gambling to Atlantic City and rejuvenate the seaside resort’s declining fortunes.

Atlantic City has been hard hit by new gaming options in nearby Pennsylvania and Delaware. The Atlantic Club casino closed in January, and the Showboat and Trump Plaza casinos have said they plan to close in the coming weeks, costing thousands of jobs.

Revel has said it is losing $2 million a week, even in the busier summer season.

Qualified bidders for Revel were required to provide a cash deposit of 10 percent, proof of finances to complete the deal and evidence they could obtain necessary licenses. Bids would also be considered for portions of business, according to court documents.

The case is Revel AC Inc, U.S. Bankruptcy Court, District of New Jersey, No. 14-22654 (Reporting by Tom Hals in Wilmington, Delaware; Editing by Peter Galloway)

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