Revel gets bids

Revel gets a $90mm cash bid from a Florida developer though unclear if they'd run it as a casino....

http://online.wsj.com/articles/several-investors-circling-atlantic-citys-revel-1410383224

If you get blocked by the paywall just click this Google link (https://www.google.com/search?q=Florida+Developer+Offers+%2490+Million+for+Atlantic+City%27s+Revel&oq=Florida+Developer+Offers+%2490+Million+for+Atlantic+City%27s+Revel&aqs=chrome..69i57.416j0j1&sourceid=chrome&es_sm=122&ie=UTF-8) and open the article, going through Google is simple little method around most news paywalls including WSJ.

 

USA Today wrote it was SOLD for this amount. :confused2:

http://www.usatoday.com/story/money/business/2014/09/10/revel-casino-atlantic-city-sold/15413755/

 

That's because USA Today, as is typical for them, isn't providing complete information.

The AP reporting or this one by local NJ press is better: http://www.northjersey.com/news/revel-says-it-has-90m-offer-to-buy-closed-casino-1.1085040

They have a purchase agreement in place with Revel but its going to be up to the bankruptcy judge. As part of the agreement they will get 2 weeks to collect final bids from other buyers. If Revel goes with another bid they'll pay a $3mm breakup fee to this buyer. Essentially, this bid or another one will be going to the bankruptcy judge on the 24th.

 

That's a steal at $90M. We went to Revel during the pre-opening and saw the amenities for the guests and rooftop lounges. Really nice!

 

Kickin', you seem to have knowledge in the area of corporate bonds and debt. I am wondering why this bidder did not come forth a few weeks ago when the court set a deadline for bids? At that time was it the court, or was it the bondholders that determined the bids were inadequate? Was it because there was no "stalking horse" or a minimum bid established? Could it be that the bidders didn't like the terms of the previous auction? I know there are absolute auctions where there is no minimum price established and reserve auctions where the winning bid must meet a minimum reserve price.

 

I don't have any direct knowledge at all about what's happening at Revel, its far removed from my area of Asian corporate debt. But the previous auction never really started in the first place since there was no opening bid. The courts want to see bids with creditor support because even if the courts approve a bid it can still be challenged, and likely will, if creditors were never on board. Also, the previous auction while Revel was still operating included a pledge to keep it as a going-concern. This is not an unusual condition when a company is still operating because courts don't want to have to weigh the interests of creditors against the interests of employees, the community, etc. And in this case the pledge may have been necessary given Revel's active gaming license, though that's just speculation. I think its a safe bet to say Revel had been in talks with these guys and others who were ready to make a bid without that pledge, and that helped motivate them to rush the closing of the property.

 

It looks like a new auction date for Revel has been set for September 24th. http://www.pressofatlanticcity.com/judge-oks-sept-revel-auction-bidder-says-property-could-be/article_2ecbc524-3ce5-11e4-9ae8-e37b14f8e9af.html?mode=jqm

 

Looks like the owner of the Hard Rock in Vegas made a $110 million bid for Revel.
http://www.nbcphiladelphia.com/news/local/New-Bidder-Pledges-94-Million-for-Closed-Revel-Casino-277602931.html

 

I thought I read somewhere that whoever purchases the Revel that it could not be operated as a casino.

 

No, the new owner of the Revel will be able to operate it as a casino. Caesars didn't own the Revel, so they can't prevent others from operating it as a casino to preserve their near monopoly in AC. Honestly, if the new owners reopen the Revel as a Hard Rock, I will probably shift my gambling from Caesars to them. The only reason I play with CET is because they have a strong national network and it's easy to get comps from them. Hard Rock is much better quality and would open up a lot of new vacation destinations for me.

 

http://www.cbsnews.com/news/revel-buyer-plans-to-re-open-atlantic-city-casino/

 

I think the Seminole's have the rights to the Hard Rock name on the east coast. But there is always a chance they could work a deal out for use of the Hard Rock name in AC.

http://en.wikipedia.org/wiki/Hard_Rock_Cafe#Casinos_and_hotels

 

This Revel thing changes week to week and day to day

What I read today is that this Canadian outfit that owns the Atlantis Casino and Hard Rock LV came in with a winning bid of 110 million. Then I heard that they're behind on their interest payments for Hard Rock LV so that may be a problem.getting the whole thing approved.. They definitely want to open it as a casino . Never a dull moment so stay tuned till tomorrow..Just what I read and hear anyway.
The Taj is turning into a court case ,maybe The Boss and Bon Jovi can go into business and buy one ,pretty sure they have the cash.

 

Hasnt hard rock been having debt issues the past few years. They expect to make AC profitable? How is that going to work?

 

I heard some other folks won the bid and are going to turn the Revel into some sort of the think-tank and invite the geniuses of the world to solve the world's problems. Not sure who would pay the electric bill for that.

 

The Revel is going to be a big success now that they were able to clear all that debt through bankrupty. It was actually a pretty popular place, but it never could have been able to pay $2.4 billion in costs. Nowhere in the USA can do that outside of Vegas. The Revel is actually a really nice resort. I am looking forward to how things turn out with the new owners.

 

Well, so much for the Brookfield plan: http://www.reuters.com/article/2014/11/20/usa-new-jersey-revel-sale-idUSL3N0TA02H20141120

That idiotic power plant continues to screw them.

 

That's pretty much the final nail in the coffin for AC. The Taj will be gone in December. Caesars and Bally's will be gone before long because CET moved them to their bad assets division to be liquidated when they inevitably declare bankruptcy. AC is finished. The three marina casinos will hold on a little while longer, but I really don't see how the city can be saved now.