Hedge Funds

Hedge Fund Officially Allowed To Become Only Thing Gambling At Or On A.C. Casino

Given everything else that’s gone wrong with Atlantic City’s flashy, unpopular new gambling paradise—and everything else that’s gone wrong in New Jersey recently—why shouldn’t a hedge fund that invests some of the Garden State’s pension cash own a casino?

The state Casino Control Commission granted final approval to Chatham Asset Management, a hedge fund that is part of a lender group that emerged with an ownership stake in Revel following its bankruptcy last year. Chatham owns 28 percent of Revel….

During a brief hearing before the commission, Evan Ratner, a principal of Chatham, did not discuss the company’s future plans. It said last year it is pursuing “strategic options,” which is code in the industry for looking at a sale or a bankruptcy filing.

Revel already had one Chapter 11 filing last year, which came less than a year after it opened. Chatham was one of the casino’s lenders, and emerged with a 22 percent ownership stake in Revel following the bankruptcy.

New Revel owners OKd by NJ casino regulators [AP via NJ.com]