Morgan Stanley is pulling out of the $2 billion Revel casino in Atlantic City, N.J., and is prepared to take “a substantial loss” on the stalled project, into which it has sunk $1.2 billion, the company said.
In its announcement Thursday, the financial services company did not state a reason for abandoning the imperiled project. It owns more than 90 percent of the ocean-themed casino-hotel on the Boardwalk.
But looming next week is a demand from New Jersey casino regulators that top Morgan Stanley officials submit voluminous personal and financial information to enable the state to determine if they would qualify to hold a casino license.
In a filing with the U.S. Securities and Exchange Commission, Morgan Stanley said it would seek to sell or auction off the project.
Revel's CEO says the project will still get built.