The former owners of Atlantic City’s Revel casino are acknowledging a long list of mistakes that helped kill the $2.4 billion resort, including an onerous energy contract that strangled the property from the get-go.
A proposed disclosure form for its bankruptcy case includes a history of Revel, which shut down last September without ever having turned a profit.
One of the costliest missteps was its contract with its sole utility provider, ACR Energy.
The 20-year contract obligated Revel to pay the firm not only for utility service, but to help pay down debt from its construction. It also guaranteed the company a 15- to 18-percent return on its investment.
The contract wound up costing Revel $2 million a month, over and above its actual energy costs.