ATLANTIC CITY, N.J. – The former president of the Mohegan Sun casino resort was approved Tuesday to serve as the new interim CEO of Atlantic City’s Revel casino.
The New Jersey Casino Control Commission gave Jeffrey Hartmann the green light to run the day-to-day affairs of Atlantic City’s newest casino. Revel expects to file a Chapter 11 bankruptcy petition on Friday.
Hartmann replaces Kevin DeSanctis, who led Revel through its arduous development and tumultuous first year, in which the $2.4 billion resort never caught on the way many thought it would. Revel has been mired near the bottom of Atlantic City’s 12 casinos in terms of the amount of money won from gamblers, though it says non-gambling revenues have been doing better.
“I am delighted to officially transition into this new role,” Hartmann said. “As the premier resort destination in the Northeast with expanding dining, gaming, and entertainment options and employees dedicated to providing guests a signature Revel experience, I see substantial opportunity, working with our Revel professionals, to drive growth. The financial flexibility our balance sheet restructuring will provide Revel with will enable us to execute our business objectives and improve operating cash flow over the coming months.”
The pre-packaged Chapter 11 bankruptcy filing will wipe out about two-thirds of Revel’s $1.5 billion in debt and give lenders a greater equity stake in the resort in return.
DeSanctis and Michael Garrity, Revel’s chief investment officer, will remain with Revel Group, the holding company that developed the resort and licenses its brand. There, they will work on developing amenity projects for Revel.
Hartmann most recently was president of the Hartmann Group LLP, offering specialized experience in the casino, hospitality and leisure industries. Before that, he was president and CEO of Mohegan Sun in Connecticut from January 2011 until October 2012.
Earlier in his tenure at Mohegan Sun, he served as chief operating officer for the Mohegan Tribal Gaming Authority from 2004 to 2010, and as its chief financial officer from 1996 to 2004.
Hartmann also served as chief financial officer for the Connecticut Sun of the Women’s National Basketball Association, and worked as vice-president of finance for the Foxwoods casino resort, also in Connecticut.
Wayne Parry can be reached at http://twitter.com/WayneParryAC