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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Quite a regular
 
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Those of us who work in the bond market don't call it a failure or a success. We call it a default. The lenders are taking an equity stake because they know the company can't meet the debt payments. You can't call it "betting on the success" of the casino; that's what they did when they lent the money initially. This is "making the most of a bad investment."
Posted on: 2013/2/21 21:10
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
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Are you serious. being 1.5 BILLION dollars in debt is success? All I'm saying again is that management of revel is incompetent and this time around, the media, and other folks can't blame those "greedy" unions.
Posted on: 2013/2/21 20:57
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
Joined:
2007/10/29 12:17 Last Login : 2018/9/5 2:01 From Hamilton Park
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449
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Restructuring debt is a relatively common and usually leaves the debt holder in a better position over time... I dont think you understand that this isnt a failure - actually, it's a success. The debt holder is now betting on the success of the casino (and its employees) as apposed to being paid back a loan interest... and in the case the casino fails they are entitled to whatever assets/equity remain. I believe that Chapter 11 provides a better facility to restructure debt... I appreciate your disdane for company's that avoid union labor, but it has zero relationship to this activity.
Posted on: 2013/2/21 20:49
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
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What I'm saying is that unions are mostly not a huge factor in a company's or organization's downfall. Look at Kaiser and Southwest airlines, leaders in their industries yet they are highly unionized, provide better services and in many cases, provide cheaper products. In revel's instance, this "restructuring" or whatever peachy term is assigned to it, is SOLELY caused by incompetent management. You can find incompetent management at every instance when a company fails, the same cannot be said of of unions.
Posted on: 2013/2/21 19:43
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
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Chapter 11, not 7. The casino is still operating. The private financiers are converting a large portion of their debt to equity. Note: Trump's casino company has filed for bankruptcy three times from the 1990's until 2009. The workers there are represented by the UAW.
Posted on: 2013/2/21 19:25
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
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A nonunion casino going under - conservatives must hate this! Can't blame the "greedy workers" with their overpaid pensions cause they don't exist. The blame squarely lies with management. Can't even blame location because Borgata, which is off the strip, is not losing as much. No one to blame but the management. I love this
Posted on: 2013/2/21 19:17
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Home away from home
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That's not entirely true... According to Bloomberg, the state involvement in the Revel casino was not a cash outlay, but rather, a deal to defer tax payments in lieu of a share of the casino profits. And, it was a deal that was brokered with both Christie as well as the democratically controlled state legislature.
And you can't really blame them for getting involved - if the casino really was already the tallest building in AC before the state came in and helped, and Revel ran out of money, it would have been a huge monument to the decay of the city in general (again, according to Bloomberg, because of casinos that have opened in Philly and NYC). NJ govt. jumping in to help was an attempt to revive Atlantic City, not just help this specific casino.
Posted on: 2013/2/21 15:19
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Re: Revel bankruptcy - Christie waste of taxpayer dollars
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Just can't stay away
 
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Christie thought our money was better used propping up this failure (and the bigger Xanadu disaster in the Meadowlands) than building infrastructure. Just like other crony politicians he made both calls for political reasons, and now NJ taxpayers pick up the bill with LESS THAN NOTHING to show for it.
Posted on: 2013/2/21 14:13
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Revel bankruptcy - Christie waste of taxpayer dollars
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Just can't stay away
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Atlantic City's Revel casino to file for bankruptcy
By The Associated Press on February 19, 2013 at 8:54 PM, updated February 20, 2013 at 12:30 PM Print ATLANTIC CITY ? Revel, the casino many people had hoped would turn around Atlantic City's sagging fortunes, said today that it will file for Chapter 11 bankruptcy protection in March, less than a year after it opened. The voluntary, prepackaged bankruptcy envisioned for late March will wipe away about two-thirds of its $1.5 billion in debt by converting more than $1 billion of it into equity for lenders. Kevin DeSanctis, Revel's CEO, said the restructuring will give the casino resort more flexibility to operate. "Today's announcement is a positive step for Revel," DeSanctis said. "The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility." Existing management will remain in place, no layoffs are planned, and employees and vendors will be paid as usual, the company said. The restructuring should be completed by early summer, it added. The $2.4 billion casino never caught on as much as it had expected to, and it remained mired toward the bottom of Atlantic City's 12 casinos in terms of casino revenue. Revel had to line up two rounds of additional financing since August to keep operating.... The project ran out of money during the recession and had to stop construction halfway through. Morgan Stanley pulled out, taking a $1.2 billion loss on the project. It only got completed with the help of state tax incentives that were approved in February 2011.
Posted on: 2013/2/21 14:11
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