Revel, the casino many hoped would turn around Atlantic City's struggling casino market, has filed for Chapter 11 bankruptcy protection.

Governor's Office, Tim Larsen

Under Monday's so-called pre-packaged bankruptcy filing, most of the casino's debt will be converted into equity for its lenders. The deal would wipe out 82 percent of Revel's $1.5 billion in debt, leaving it with a much more manageable $272 million in debt.

A majority of Revel's creditors has agreed to the filing's terms.

Revel plans to continue operating normally, promising that employees and vendors will continue to be paid.

The company hopes to have the plan approved by a judge and wrapped up by early summer.

The $2.4 billion resort opened April 2 but has lagged near the bottom of Atlantic City's 12 casinos in terms of gambling revenue.

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