Revel bankruptcy could jeopardize tax breaks the casino seeks to tap to pay creditors

Revel wants to satisfy some of its debt by earmarking money from future state tax breaks, but by filing for bankruptcy, the megaresort is jeopardizing $261 million in total eligible tax breaks, financial filings show. Atlantic City’s newest casino, which has begun the process of restructuring $1.5 billion in debt, wants to satisfy its obligation to one group of creditors by promising them rights to future tax breaks up to $70 million, according to documents Revel filed Thursday with the federal Securities and Exchange Commission. But in an agreement Revel struck with the state Economic Development Authority in 2011 — which authorized the granting of $261 million in tax breaks over 20 years — filing for bankruptcy, including voluntarily, is grounds for a default and allows the state to end the agreement. That means Revel may never receive any tax breaks for which it had once been approved, and creditors also may never have access to it. No decision has been made on whether to end the Economic Redevelopment and Growth Incentive Grant Agreement with Revel. But state officials said there is no risk to taxpayers because Revel has not yet satisfied all of the requirements in its grant agreement. That means that even though the casino has been operating for nearly a year, no tax reimbursements have been paid to the casino. Read the rest at http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/revel-bankruptcy-could-jeopardize-tax-breaks-the-casino-seeks-to/article_d1862b96-8cde-11e2-b5bf-001a4bcf887a.html