Caesars’ CEO Loveman Says No Qualified Bidders for Revel
Caesars Entertainment Corp. (CZR) Chief Executive Officer Gary Loveman said no qualified bidders have emerged for the bankrupt Revel hotel and casino in Atlantic City, after an auction was postponed last week.
It “suggests that even at a de minimis price, people are finding it hard to imagine they can make money operating the Revel,” Loveman said on a conference call yesterday, without specifying where he got the information.
Stephen Cohen, an outside spokesman for Caesars, said that Loveman’s remarks were based on published accounts of efforts to auction the New Jersey property. Harry Hurley, a host on WPG Talk Radio in Atlantic City, and an NBC station in Philadelphia reported earlier that no acceptable bids have been received, citing sources they didn’t identify.
Shrinking betting action in Atlantic City contributed to a doubling of Caesars’ quarterly loss, the Las Vegas-based company said in a statement yesterday. Caesars, the largest U.S. owner of casinos in the U.S., posted a second-quarter deficit of $466.4 million, or $3.24 a share, citing higher interest costs and an 8.3 percent decline in revenue outside of Las Vegas, including the New Jersey resort city.
Caesars, owner of the namesake Caesars Palace and Planet Hollywood resorts, has its own debt problems. The company is fighting creditors in court over its efforts to deal with $23 billion of debt from a 2008 leveraged buyout.
Shares of Caesars fell 4.8 percent to $13.01 in extended trading after it announced results yesterday. The stock has fallen 37 percent this year.
Lisa Johnson, a spokeswoman for Revel AC Inc., declined to comment on Loveman’s remarks. Chris Filiciello, chief of staff for Atlantic City Mayor Don Guardian, didn’t respond to a request for comment.
Revel has been in bankruptcy twice since it opened in 2012. The company last week postponed its auction until Aug. 14, to analyze multiple bids, according to court documents filed in U.S. Bankruptcy Court in Camden, New Jersey. The company is expected to seek court approval of a sale after that date.
To contact the editors responsible for this story: Anthony Palazzo at email@example.com Ben Livesey