Revel Owners Receive Operating Approval

Chatham Asset Management received approval from New Jersey regulators to operate the Revel casino hotel in Atlantic City. The company is part of a lender group that emerged from revel’s bankruptcy procedures with an ownership stake. The company is still expected to sell the casino.

New Jersey casino regulators have approved an investment firm to be the largest owner of Revel Casino Hotel and continue operations at the casino.

The state Casino Control Commission granted the approval to Chatham Asset Management, a hedge fund that is part of a lender group that came out of Revel’s bankruptcy last year owning 28 percent of the casino hotel, according to the Associated Press.

Despite the approval, the casino is still thought to be up for sale. Chatham officials did not disclose any future plans for the property in front of the commission. Last year, Revel announced it is pursuing “strategic options.” which analysts feel means the casino is either seeking a buyer or considering another bankruptcy filing.

Revel filed for Chapter 11 last year. Chatham was one of the casino’s lenders, and emerged with a 22 percent ownership stake in Revel following the bankruptcy. Officials said Chatham has since purchased an additional 6 percent ownership stake, and is Revel’s largest owner, according to the AP.

Rumored buyers for the casino include Caesars Entertainment and the Seminole Tribe of Florida’s Hard Rock International.