ATLANTIC CITY, N.J. -
It opened for business less than a year ago, but now Revel is filing for Chapter 11 bankruptcy protection in March.
Atlantic City's newest, $2.4-billion casino is nearly a billion bucks in debt.
Gov. Chris Christie said Wednesday that he still has faith in Revel.
"So those people who were owed debt now are taking ownership in the hotel. They're showing their faith and confidence in the concept and in the future of Atlantic City by not walking away and closing the place down but by in fact saying, 'We're going to take the money that we're owed and instead we'll take stock in the company,'" Christie said.
What does filing for bankruptcy mean for the future of the Revel hotel, resort and casino?
Also, what should you do if a business you frequent files for bankruptcy? Should you still book a room, a bachelor party or a wedding there?
Financial expert Dan Roccato, of Quaker Wealth Management, joined "Good Day" on Thursday morning to talk about Revel's future.
Revel's revenue was only $8 million in January. But Roccato said it's not the first casino to get in trouble. Trump Plaza just sold for $20 million, Golden Nugget sold for $38 million, and Tropicana is in bankruptcy.
Bankruptcy does not always mean shutting your doors, Roccato explained. It gives Revel a lifeline – lenders agree to reduce debt in exchange for ownership – and it allows it to stay open.
Revel can operate for some time in bankruptcy, as long as the owners put cash in. Roccato noted that Trump and Tropicana used bankruptcy to rebuild.
As for tips for planning an event there, Roccato said don't pre-pay 100 percent for the room fee or event, and avoid booking the event too far in advance, like two years. If that's not possible, negotiate a graduated deposit payment.
And Roccato offered more tips during the interview. You can hear those by watching the video clip above.
