Revel AC asks court to disband creditors committee, cites plan support

By Caroline Salls

Pittsburgh, April 18 - Revel AC, Inc. asked the U.S. Bankruptcy Court for the District of New Jersey to vacate the appointment of the company's official committee of unsecured creditors (OCUC), according to a Thursday court filing.

Revel AC said the court should vacate the appointment of the OCUC because the debtors have already received unanimous support from voting creditors for a plan of reorganization that will pay all general unsecured creditors in full.

"Given that an OCUC could not maximize the recovery for unsecured creditors beyond 100% of their allowed claims, the only purpose of the OCUC in these Chapter 11 cases would be to serve the interests of individual creditors (and perhaps a single unsecured creditor) and not to serve as a fiduciary for all unsecured creditors as section 1102 of the Bankruptcy Code contemplates," the motion said.

Revel AC said the OCUC's only remaining member is AIG Property Casualty affiliate National Union, an insurance provider that is partially secured by a cash collateral account and is in litigation with the company.

"To require the debtors' estate to pay for advisors for its litigation adversary under the guise of an official committee of unsecured creditors designed to improve recoveries in a 100% recovery case would be an absurd result and should not be allowed by this court," the motion said.

Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on March 25. Its Chapter 11 case number is 13-16253.

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