Tue Mar 26, 2013 3:59pm EDT
* $2.4 bln casino open less than a year prior to bankruptcy
* NJ Gov. Christie provided tax package
By Jonathan Stempel and Tom Hals
March 26 (Reuters) - Revel, a centerpiece of New Jersey Governor Chris Christie's effort to revitalize Atlantic City, said it hopes to complete a pre-packaged restructuring within 60 days after the casino, open less than a year, filed for bankruptcy protection.
With help from $250 million of financing, Revel expects to continue operations during the restructuring after its Chapter 11 filing on Monday night.
Built for $2.4 billion and featuring 1,800 hotel rooms, theaters, nightclubs and 14 restaurants, including several with celebrity chefs, Revel aimed to bring Las Vegas-quality gambling to Atlantic City's declining gaming business.
But the city's first new casino since 2003 never lived up to its financial projections amid growing competition from nearby Pennsylvania, and struggled to meet its obligations after the late October evacuation of Atlantic City during Hurricane Sandy.
Even before that storm, Revel had in the prior quarter the lowest occupancy rate for any Atlantic City casino. The casino opened on April 2, 2012.
Interim Chief Executive Jeffrey Hartmann said he expects Revel's restructuring, which requires court approval, to be complete before the critical summer season.
The restructuring plan calls for debt to be reduced by 82 percent to $272 million from $1.52 billion through a debt-for-equity swap.
Lenders include Canyon Capital Advisors and Chatham Asset Management, which are expected to become owners after the bankruptcy ends.
According to a filing with the U.S. bankruptcy court in Camden, New Jersey, Revel has about $1.1 billion of assets and $1.5 billion of liabilities. It also has $388 million of publicly traded second-lien notes maturing in 2018.
Christie had provided a $261 million tax package to help build Revel after Morgan Stanley, which had begun building the casino, pulled out of the project two years ago and took a $932 million loss.
Spokesmen for the governor did not return requests on Tuesday for comment.
Revel has employed for its reorganization Alvarez & Marsal as its restructuring adviser, Moelis & Co as its investment banker, and the law firm Kirkland & Ellis.
The case is In re: Revel AC Inc, U.S. Bankruptcy Court, District of New Jersey, No. 13-16253.
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