Investment Firm Pulls Chips Out of AC Casino Project - NBC 10 Philadelphia

Investment Firm Pulls Chips Out of AC Casino Project

Morgan Stanley pulling out of Revel Casino

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    Investment Firm Pulls Chips Out of AC Casino Project
    Loan89, Flickr
    When it's finished the mega resort's tower will reach 47-stories into the sky.

    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.