Revel AC granted court confirmation of amended plan of reorganization

By Kali Hays

New York, June 29 – Revel AC, Inc. won confirmation of its amended plan of reorganization from the U.S. Bankruptcy Court for the District of New Jersey, according to a Monday court entry.

As previously reported, the company received approval of the plan disclosure statement May 6.

The plan will carry out the liquidation and distribution of estate proceeds from Revel’s $82 million sale of substantially all company assets and includes a settlement agreement between the company, its debtor-in-possession agent and lender Wells Fargo Bank NA and its official committee of unsecured creditors.

The stop-and-go asset sale with buyer Polo North Country Club, Inc. closed at the beginning of April.

With the settlement agreement, Wells Fargo will carve out $1.6 million from the proceeds of the sale for the benefit of allowed general unsecured claims, according to the plan disclosure statement.

Upon the effective date of the plan, all distribution powers of the estate will be transferred to a liquidation trustee who will proceed with a full wind down of Revel’s estate.

The liquidation trustee will be appointed by Wells Fargo, with Revel retaining “absolute veto and approval rights.”

All company assets, including avoidance actions and litigation claims, will be held in a liquidating trust.

Also on the effective date of the plan, an oversight committee will be formed consisting of three members appointed by Revel, according to the disclosure statement.

Specific creditor treatment under the proposed plan is as follows:

• All DIP claims will be allowed in full and will be paid in full in cash from any available estate proceeds;

• Holders of allowed administrative claims, priority claims and non-lender secured claims will be paid in full in cash on the plan effective date or distribution date;

• Holders of allowed tax claims elected by the liquidation trustee will receive full cash payment over a period not to exceed five years after the bankruptcy petition date;

• Holders of first lien lender claims will receive a proportionate share of net recoveries from avoidance actions and any remaining collateral proceeds after full payment of all DIP claims;

• Holders of other lender claims will also receive a proportionate share of net recoveries from avoidance actions and any remaining collateral proceeds after full payment of all DIP claims and first lien lender claims;

• Holders of allowed unsecured claims will receive a proportionate share of settlement proceeds; and

• Holders of CPR claims will receive no distribution and all equity interests will be canceled.

Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on June 19, 2014. The Chapter 11 case number is 14-22654.

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