(GlobeSt.com) — Morgan Stanley said it is pulling out of the $2 billion Revel casino in Atlantic City and is prepared to take “a substantial loss” on the stalled project, into which it has already sunk $1.2 billion. The company, which owns more than 90% of the ocean-themed casino/hotel project on the Boardwalk, did not list a reason for abandoning the project.
In a filing with the US Securities and Exchange Commission, Morgan Stanley said it will seek to sell or auction off the project. The filing said the company’s directors on Wednesday “authorized management to proceed with a plan of disposal for Revel Entertainment Group, LLC,” a subsidiary of Morgan Stanley. According to the filing, the company may consider a direct sale to a third-party or an auction process.
