These were the profound words written by Admin on August 16, 2012
http://www.theburningplatform.com/?p=39039
“If you build something in the real world and you project $560 million of annual revenue from your $2.4 billion investment, and you actually generate $200 million of revenue, you get fired. When you are the governor of New Jersey and you’ve handed out $261 million of taxpayer dollars to the fuckwads running this joint, you get re-elected to another term and get selected to make the keynote address at the Republican Convention. Christie also promised 5,000 NEW FULL-TIME jobs for Atlantic City and the Revel actually has 2,780 full time employees. So Christie’s promises were only off by 64% on revenue and 44% on number of jobs.
This is the Republican method of less government in your lives. It actually means less money in your pocket. This albatross will not be able to make its loan payments in the next year. It will declare bankruptcy. It will be a vacant rotting hulk that should be renamed Christie’s Delusion as a tribute to his brilliance in picking winners.”
This is a preview of what you will get if you elect fatboy Christie as President in 2016. The Republicans love their corporate welfare as much as the Democrats love their entitlement handout welfare. They are equally despicable. Corporations and people need to succeed or fail on their own. Instead, we pay for the irresponsible behavior of the Free Shit Army.
I initially predicted the bankruptcy of this bloated pig in June of 2012. Next up JC Penney.
New Jersey Casino Files For Bankruptcy Ten Months After Opening; No Taxpayer Funds Will Be Lost This Time
Submitted by Tyler Durden on 02/19/2013 20:54 -0500
If it seems like it hasn’t been even a year since the latest Atlantic City casino, this one with the surreal ads showcasing Revel Atlantic City, opened up, it is because that is exactly the case. Ten months to be precise. And just as quickly as it came, just as quickly did it file for bankruptcy. Moments ago, the company issued a press release that it would engage in a debt-for-equity prepack (with Moelis, K&E and A&M all advising) Chapter 11 which will be completed over the summer. The biggest losers here are not so much the original owners of Revel Entertainment Group, Morgan Stanley which three years ago decided to walk away from its entire $932 million sunk investment in the bankrupt hotel (instead of spending another billion to complete it), but the people of New Jersey, who just lost another investment opportunity as some $260 million in the tax incentives that were supposed to help the project along will never reach their intended target. From the WSJ:
[Revel] received a boost from the state of New Jersey, which over 20 years will send back $261 million in taxes from the project under an economic-redevelopment initiative. Most of that money will be used by Revel to spruce up the scruffy neighborhood and boardwalk around the casino. About $70 million will go into an account that can be used to pay initial interest on the mezzanine loan if the project doesn’t meet projections.
The $70 million piece was a key late addition that helped secure the mezzanine funding, according to people involved in the financing process.
The other losers here are the unnamed debt holders who in February 2011 also injected $850 billion in first-lien and $305 million mezz loans which would eventually become 85% of the equity – the CEO of the firm refused to discuss whose these investors were, referring to them only as a “consortium of institutional investors.” JPMorgan acted as advisor for Revel in connection with the debt raise. Nearly a year later, JP Morgan advised lenders to sink another $150 million in good money after bad: “The casino resort said it amended its agreement with JP Morgan Chase Bank to provide for additional money to help pay down existing debt and to fund operations. Most of it consists of a new $125 million loan.”
The continuation of the abandoned investment was the brainchild, and pride and glory of one Chris Christie who then said “the $2.4 billion Revel is one of the most spectacular resorts he’s ever seen and expects it will motivate other Atlantic City casinos to revitalize their properties. “I think that one of the things that Revel will be is a catalyst for additional modernization and investment by the other casinos to say, listen, if we grow more people here coming to the region and we’re offering something that looks nice further down the boardwalk, maybe people will want to look there as well.” As it now stands, the Revel will only be a catalyst for further bankruptcies as industry after industry finds out what a tapped out consumer with no access to $1.8 trillion in excess reserves truly means.
The other losers are the usual suspects: unions.
While construction unions have been backers of the project, the hospitality-workers union and conservative groups have criticized the state help. Unite Here, which represents workers at Atlantic City’s casinos, has complained that the project could force older casinos to close, which would mean more laid-off workers.
Mr. DeSanctis on Thursday said the project hoped to instead expand the market by appealing to business groups and leisure travelers who aren’t visiting Atlantic City these days.
So much for that. As for the fresh start capital structure, the lenders will roll some $205 million in pre-petition debt into a DIP, and provide a fresh $45 million in new capital, as yet another batch of good money is thrown after bad money that once was good money also thrown after bad, and so on.
As part of the restructuring, certain of Revel`s lenders will provide approximately $250 million in debtor-in-possession financing (DIP), approximately $45 million of which constitutes new money commitments and approximately $205 million of which constitutes prepetition debt.
But the funniest part from the pre-packaged bankruptcy press release is the following line:
No tax payer funds will be used to finance the restructuring.
Ladies and gentlemen: we have just found the first insolvent Wall Street casino (literally) that did not get a taxpayer bailout.
And now: the surreal Revel ad as promised.
Eddie says:
” No tax payer funds will be used to finance the restructuring.”
Not yet anyway. Let’s see what happens if this capital infusion band-aid fails. Maybe the state can give free Lotto tickets to aging boomers to get them to book rooms in the hotel.
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20th February 2013 at 8:49 am
Eddie says:
Admin, you’re starting to remind me of Reggie Middleton.
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20th February 2013 at 8:50 am
Administrator says:
Eddie
Because I’m black?
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20th February 2013 at 8:55 am
Eddie says:
No, because you are insufferably smug when you’re right. The fact that you’re an ex-minority has nothing to do with it.
(Irish doesn’t count anymore, sorry)
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20th February 2013 at 8:59 am
AWD says:
Eddie
Being insufferably smug is part of his appeal. And He’s always right, just ask him.
I think it has something to do with being Irish
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20th February 2013 at 9:46 am
Administrator says:
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20th February 2013 at 9:54 am
Administrator says:
It ain’t tough being right in this world.
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20th February 2013 at 9:56 am
Administrator says:
How Avalon deals with my smugness
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20th February 2013 at 10:01 am
michaelj007 says:
according to GlobeSt.com the casino project was just a little, ya know, “unlucky”
http://www.globest.com/news/12_543/newjersey/hotel/revel-casino-bankrupt-atlantic-city-330207.html?ET=globest:e37179:28044a:&st=email&s=&cmp=gst:New_Jersey_AM_20130220:editorial#comments
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20th February 2013 at 10:03 am
Eddie says:
If you wish to gain the benefits of minority status, I suggest you join with the other twelve people in this country who can do simple arithmetic and apply together as a group, as “mathematically differently abled”.
The ability to to add two and two could be construed as a stumbling block these days to the pursuit of happiness.
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20th February 2013 at 10:04 am
AWD says:
Avalon’s favorite shirt:
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20th February 2013 at 10:11 am
AWD says:
Being smug is genetic, you get it from your parents
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20th February 2013 at 10:13 am
Administrator says:
I’m glad there are no smug doctors out there.
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20th February 2013 at 10:17 am
fool on the hill says:
Admin may be green or orange …………….But not YELLOW!
You are welcome in my foxhole Jim.
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20th February 2013 at 10:47 am
KaD says:
So the rethuglicans suck and we know what the dumbocrats are like-who the hell are we supposed to vote in to fix this shit again?
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20th February 2013 at 11:51 am
AWD says:
Some things I’m not smug about, just like Smokey and his foot-long
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20th February 2013 at 12:01 pm
Hope@ZeroKelvin says:
hahahaha, are there any smug doctors out there, as if there are any other kind, hahahaha
It is a GREAT feeling, but not as great as watching all the dumbasses that refused to listen to me come to complete and utter grief.
Welcome to the club Admin!!!
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20th February 2013 at 2:04 pm
Novista says:
Christie has other creative ways of misusing Federal monies, eh?
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20th February 2013 at 8:22 pm
Stan says:
Please guys don’t ever vote for Christy. He would be bad. I would rather have Obama again or Hillary or Biden.
Christy must not become president.
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20th February 2013 at 6:52 am