The Wall Street Journal reported a bankruptcy judge on Tuesday approved a $26 million tax settlement between Atlantic City, N.J., and the boardwalk’s shuttered Revel Casino Hotel.
The settlement, which includes more than $7 million in savings on unpaid property taxes and penalties that exceed $33 million, comes after the city failed to attract any bids for a tax lien against Revel at a sale earlier this month.
According the the Wall Street Journal report, Judge Gloria M. Burns of the U.S. Bankruptcy Court in Camden, N.J., said she would also sign an order allowing Revel to increase an interim bankruptcy financing package to fund the settlement, which calls for payment no later than Wednesday. The increased financing package will include an additional $21 million from Wells Fargo NA WFC, $19 million of which will be combined with $7 million in cash on hand to fund the $26 million settlement. The remaining $2 million in financing is intended to provide enough cash to allow Revel to pay its operating expenses until Jan. 8, according to court papers.
To read the full Wall Street Journal report from MarketWatch, click here.