Revel AC Inc., the former owner of the Revel Casino Hotel in Atlantic City, N.J., took a decisive step toward winding down its chapter 11 case yesterday after a judge approved a settlement that divvies up the proceeds from the recent sale of the resort to a Florida developer, Dow Jones Daily Bankruptcy Review reported yesterday. Following a hearing in Camden, N.J., Bankruptcy Judge Gloria Burns said that she would sign an order that sets aside about $32 million of the $82 million in sale proceeds for creditors, lawyers and other administrative expenses. The settlement reserves $1.6 million for unsecured creditors, $150,000 of which may be used to fund future litigation against Revel's estate or others. The settlement also calls for $10 million for senior lender J.P. Morgan, $13.5 million for unpaid legal fees and administrative expenses and $7 million to pay for any future administrative costs associated with winding down the case.
