ATLANTIC CITY, N.J., Feb. 20 (UPI) -- The Revel casino in Atlantic City, N.J., said Tuesday it would file for Chapter 11 bankruptcy, reducing its debt by $1 billion so it can stay in business.
"Today's announcement is a positive step for Revel," Kevin DeSanctis, Revel's chief executive officer, said in a statement. "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."
The deal, reached with a majority of the casino's creditors, is expected to be finalized by early summer, the Press of Atlantic City reported.
The $2.4 billion establishment, which had its grand opening in May 2012, employs 2,800 full-time and 1,000 part-time workers. The bankruptcy will not affect operations, employees or vendors, the newspaper said.
"This restructuring positions Revel for long-term success by providing the company with the operational flexibility to invest in the growth of our business," Michael Garrity, Revel's chief investment officer, said in a statement.
"The agreement between Revel and its lenders will allow for a necessary financial restructuring and improve the property's financial condition going forward," said David Rebuck, director of the New Jersey Division of Gaming Enforcement. "We see this as a positive step that will allow Revel to comprehensively address its financial needs while continuing normal business operations."
"A rejuvenated Revel will remain an integral part of that landscape, as it continues full operations," Michael Drewniak, Gov. Chris Christie's press secretary said in a statement. "Most importantly, none of those things that make Revel among Atlantic City's highest-profile attractions will change, as Revel uses this new financial flexibility and the continued backing of its investors to grow the business and be part of Atlantic City's expansion."