Winter Harbor LLC
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Revel AC, Inc.

 

Revel AC, Inc. (Revel) was a $2.5 billion casino facility featuring two nightclubs, thirteen restaurants and live entertainment venues, located in Atlantic City, NJ. In 2018, Revel was sold and underwent a rebranding, changing its operating name to Ocean Resort Casino.

Situation

Following their first bankruptcy filing, Revel AC required assistance with preparing for its second bankruptcy process, and expert testimony to support motions before the court. Moreover, Revel requested support in managing continued service and payments to key vendors and creditors as it underwent bankruptcy filing.

Scope of Work

Winter Harbor was hired to act as chief restructuring officer and liquidating trustee to lead the second bankruptcy filing of Revel.

  • Evaluated financial and operational performance and liquidity needs as company continued to generate negative EBITDA after exiting its first Chapter 11 bankruptcy.

  • Negotiated daily credit terms with lenders to determine borrowing and potential increases in availability.

  • Projected near-term cash flows to determine if a second bankruptcy filing was necessary and project the size of a DIP loan under ongoing operations, shutdown, and liquidation.

  • Prepared the Company for its second Chapter 11 bankruptcy with no stalking-horse bidder and uncertainty as to whether it would continue as a going concern or be liquidated.

  • Prepared weekly cash-flow budgets, operational analyses, statements and schedules, monthly operating reports and other bankruptcy-related analyses during the case.

  • After no qualified bidders were identified, we assisted in planning and budgeting the shutdown of the facility to reduce cash burn before a sale.

  • Assisted in investment-banking process leading to the contentious, but ultimately, successful auction.

Engagement Outcome

Winter Harbor prepared Revel for filing Chapter 11 bankruptcy and led reorganization negotiations with key constituents. We successfully negotiated an $80 million financing line to provide operating funds during the pendency of the case. Our professionals implemented cost saving measures and cash conservation initiatives, along with serving as liquidation trustee during Chapter 11 processing.