| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Revel AC Inc. > News item |
Revel to pay more than $8.4 million in cash, claims under agreements
By Caroline Salls
Pittsburgh, June 26 – Revel AC, Inc. requested court approval of three agreements under which the company will pay out more than $8.4 million, according to motions filed June 25 with the U.S. Bankruptcy Court for the District of New Jersey.
Under a settlement between Revel, its official committee of unsecured creditors, ACR Energy Partners, LLC, Wells Fargo and the Bank of New York Mellon, ACR will receive a $3.3 million administrative claim.
In accordance with Revel’s amended Chapter 11 plan, ACR will receive $2.6 million in cash to be deposited in its accounts at Bank of New York Mellon and the first $700,000 in proceeds from specified sales.
The disputes being resolved by the ACR settlement revolve around an operations letter of credit issued for the benefit of the Revel debtors and the account of ACR.
Under a settlement with the State of New Jersey, the state will receive a $1.65 million administrative claim in full satisfaction of any unpaid sales and use taxes owed by the Revel debtors.
The claim will be paid by Revel’s liquidation trust in full in cash within 60 days of the plan effective date.
Also, under an agreement that amends a previous settlement between Revel, the committee and Wells Fargo, the settlement payment will be reduced to $1.08 million from $1.6 million. None of that amount will go to ACR.
Instead, Revel said it will satisfy a portion of ACR’s claim under the previous settlement through $500,000 in sale proceeds, as well as $100,000 from Revel’s collection of deposits and refunds.
In addition, Revel will distribute $2.43 million in cash to Wells Fargo under its modified plan.
Hearings on all three agreements are scheduled for June 29.
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.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.