Atlantic City’s Revel casino and hotel, the most recent addition to the city’s famed boardwalk, will head to the auction block Thursday as part of its second bankruptcy in as many years.
According to documents filed with the Camden, N.J., bankruptcy court, the auction was moved from Aug. 7 because lawyers “need additional time to fully analyze and evaluate the bids received and are not prepared to go forward with the scheduled auction.”
A hearing to approve the winning bid is scheduled for Aug. 18.
Revel received bankruptcy-court approval for its auction timeline last month. The rules permit lenders to credit bid—or forgive debt they’re owed instead of paying cash for the assets—for the property, a provision the drew resistance from unsecured creditors.
The property, a gleaming, 47-story tower, spans 6.2 million square feet and includes 2,300 slot machines and about 1,400 hotel rooms. Without a successful sale, Revel has said it will shut its doors and lay off all 2,000 employees on Sept. 1.
Monday, LightSquared will hold a status conference on an overhauled reorganization plan, which appears to spell the end of longtime backer Philip Falcone’s ownership of the wireless venture.
In the plan, filed Thursday with the Manhattan bankruptcy court, LightSquared didn’t make any references to a prior $3.05 billion restructuring proposal it had touted, which would have given 74% of the company to Cerberus Capital Management, Fortress Investment Group LLC and J.P. Morgan Chase & Co. in exchange for new money.