Chris Christie's Pet Project Casino looking to borrow another $100mil to avoid bankerupcy

[LynneSin]

Revel asks to borrow another $100 million to stay afloat

Revel casino, badly in the red just 4 1/2 months after opening, is asking its lenders for up to $100 million to make it through this year and 2013.

The $2.4 billion Las Vegas-style gambling palace heralded as "Atlantic City's future" by many - including Gov. Christie, who directed more than $300 million in state assistance toward getting it built - said Monday that it has entered into discussions and expects to receive $70 million in additional commitments for the new revolving credit facility.

Wall Street gaming analysts say Revel needs the money to avoid defaulting on its loans.


<<<<<snip>>>>>>

Since its soft opening April 2, gaming-revenue numbers have been anything but rosy. Even in the Shore's peak summer season, Revel generated just $17.5 million last month in total casino revenue, compared to $54 million for Borgata. That was up only slightly from the $14.9 million made in June.

Thus far, revenue figures are nowhere near the $30 million a month analysts say Revel needs to generate to stay solvent. It has consistently ranked eighth in revenue among the dozen Atlantic City casinos, just ahead of much smaller venues with far less debt, including the Atlantic Club and Trump Plaza. And the casino soon will be facing hefty interest payments in the fall and winter, when business slows down significantly at the Shore.

John Kempf, a gaming analyst with RBC Capital Markets L.L.C., said Monday's development "means the lenders have decided they will support the company. I think the liquidity through 2013 is very important."

So does Christie, who said he was not yet overly concerned about the slow start. The state's assistance to Revel included $261 million in tax credits toward its completion announced by the Republican governor in February 2011, when just a shell of a casino was standing.



Read more: http://www.philly.com/philly/business/20120820_Revel_asks_to_borrow_another__100_million_to_stay_afloat.html?cmpid=124488459#ixzz249O6w083
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This was suppose to be the big job creator and economy savior in Chris Christie's world but he rejected stimulus money to help build the much needed tunnel between NYC and NJ. A project that would have created more high paying jobs. I know the Akin/rape story is top of the news but Chris Christie is the GOP Keynote Convention speaker and a clear failure in the state of New Jersey. He put alot of NJ tax dollars on the line for an industry that has been on the decline for years.

[Angry Dragon]

1. christie gambles with taxpayer's money ......... no big deal, it is not his money

[MADem]

2. The reader comments in all the articles about the place are very interesting...

Atlantic City has a real opportunity to put itself out there--Boardwalk Empire, and all that...

This place looks very beautiful, but I think it's too expensive and high-end for the average gambler by the sea...?

[LynneSin]

3. Christie needs to realize that Atlantic City will never be Las Vegas

And not that there is anything wrong with that, but the hotel should have catered to the people who actually gamble. They are hoping to lure younger people into Atlantic City but who wants to go there when you're a short drive from NYC or Philly.

[MADem]

4. I thought it was more of a place for an affordable "mini-break."

The core of the business is gambling and the prices of the rooms need to be affordable. If you can afford a three hundred buck a night hotel room, you can afford to fly to Vegas and get the same room for less!

What are the best hotels there, that people routinely like to stay at to get the full AC experience? Is this place in the thick of things, or is it off to the side?

[Firebrand Gary]

5. Maybe Christie should not have cancelled that tunnel project!

People from the city would have flocked in just to use it.