Bankruptcy

City bankruptcy challenge nixed SACRAMENTO, Calif. - The city of Stockton, Calif., can continue in bankruptcy after a federal judge Monday rejected legal challenges by Wall Street creditors. The ruling by U.S. Bankruptcy Judge Christopher Klein means that the city of more than 290,000 residents can continue to seek protection from its creditors as the largest city in America to declare bankruptcy. In his 90-minute "finding of facts," Klein portrayed Stockton has having negotiated in good faith with creditors that insured a city pension bond and issued bonds for a downtown redevelopment, including a sports arena.

The Broadview Group L.L.C. , doing business as Broadview Staffing Services , 1528 Walnut St., Site 1720, Philadelphia; Chapter 7; no schedules available. Jensen Movers & Storage Inc. , 11 Church Rd., Hatfield; Chapter 11; no schedules available.   PJ's Pub and Grille L.L.C. , 2301 Route 50, Mays Landing; Chapter 7; no schedules available.     SOURCES: The Legal Intelligencer, the U.S. Bankruptcy Court for the District of New Jersey.

Acknowledging the time constraints that Revel AC Inc. faces to get its financial house in order in time for the Shore's summer season, U.S. Bankruptcy Judge Judith Wizmur on Wednesday approved a series of first-day motions by attorneys for the casino, including interim approval of $250 million in debtor-in-possession financing. The money is a key part of Revel's reorganization plan to exit from bankruptcy within 60 days, or by May 30. In its 390-page filing in U.S. Bankruptcy Court in Camden late Monday, Revel listed $1.1 billion in assets and $1.5 billion of debt.

While its CEO made public assurances that it had sufficient liquidity to make it through 2013, the debtors of the lavish but flagging Revel casino in Atlantic City scrambled to arrange a bankruptcy filing. The burden of servicing $1.5 billion in debt, amid dismal revenue, was simply too heavy, according to the 390-page petition filed by owner Revel AC Inc. late Monday in U.S. Bankruptcy Court in Camden. On Page 13 of the voluminous petition, the debtors listed four ways they hoped to improve business: Add a high-end slots area, a new and less-expensive food court, a semi-private VIP players' lounge, and not least, a smoking area.

East Orange, N.J., native Dionne Warwick , 72, has filed for personal bankruptcy in her home state. The five-time Grammy-winning singer of "Do You Know the Way to San Jose" lists total assets of $25,500 and total liabilities of more than $10.7 million, nearly all tax claims by the Internal Revenue Service and the State of California, according to the filing obtained by Reuters. Warwick says she has a monthly income of $20,950 and expenses of $20,940. Warwick's rep, Kevin Sasaki , says Warwick was forced to file due to "negligent and gross financial mismanagement" in the late '80s and '90s.

AC Revel Inc., owner of the struggling Revel casino in Atlantic City, formally filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Camden Monday, as expected. The company filed at 10:20 p.m. The prepackaged bankruptcy, with terms Revel's creditors have agreed to, is meant to reduce the casino's estimated $1.5 billion in debt by about $1 billion and provide it $250 million in debtor-in-possession financing, $42 million of which is new money. The additional financing will provide Revel new working capital, fund certain capital expenditures and pay other expenses related to the financial restructuring.

ATLANTIC CITY - Revel AC Inc., owner of the ailing, barely-a-year-old Revel casino, is expected to file its Chapter 11 petition in U.S. Bankruptcy Court in Camden on Monday, the start of what is expected to be a two-month process to get its finances back on track. Revel will maintain normal business operations during the bankruptcy. But the financial restructuring appears to clear the way for a series of practical changes, including addition of a smoking area, a beach bar, and more reasonably priced restaurants, among other things, by Memorial Day weekend, in time for the resort's peak season.

As the next step in its post-bankruptcy evolution, the Prince Music Theater has named a new board of directors and an executive director. James E. Hines, 35, is the new chief staffer, joining the Prince after three years as artistic administrator of the Mann Center for the Performing Arts. The Prince, a former movie house on Chestnut Street, exited Chapter 11 on Oct. 15 after being won at bankruptcy auction by a group of business investors known collectively as 1412 Chestnut Street Corp.