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Who are Revel's creditors? That's the billion-dollar question.
It's not an easy one to answer, even after a majority of the lenders agreed to a bankruptcy restructuring last week in an effort to convert more than $1 billion in debt into equity for the lenders. "Usually these investors are not transparent," one source said.
NJBIZ worked with multiple sources in December and January to identify the top Revel creditor for our Power 100 list. We came up short on that question, with sources unable — or unwilling — to identify the one person at a lender who might decide Revel's fate, even before the bankruptcy rumors started swirling earlier this year.
But we were able to compile a list of creditors from the sources. Among the lenders: Aladdin Credit Intermediate Fund Ltd., Aladdin Intermediate Fund (Ireland) II Ltd., Bank of America N.A., BLT 10 LLC, Canyon Capital Advisors LLC, Capital Research and Management Co. (on behalf of the lenders it advises), Chatham Asset High Yield Master Fund Ltd., Chatham Eureka Fund LP, Cole Brook CBNA Loan Funding LLC, Credit Suisse Loan Funding LLC, Franklin Mutual Recovery Fund, JP Morgan Chase Bank NA, JP Morgan Whitefriars Inc., MC Credit Products DIP SMA LP, Mutual Quest Fund, Princeton Credit Opportunity Fund LLC, SOL Loan Funding LLC, Virginia Retirement System and UBS AG.
There are a few caveats with this list. Research indicates the lenders listed above were on board sometime in 2011. It is unclear which investors, if any, have sold their stakes. A Revel spokeswoman would not provide a current list of creditors, and declined to comment about the list compiled by NJBIZ.
Wells Fargo also was cited as an investor. There was conflicting info from the sources about JP Morgan Chase, with at least one source saying JPMC is running the deal for a group of investors, while another said JPMC probably does not have its own funds invested, or only a token amount.
We guess the main person who needs to know the creditors is Kevin DeSanctis.
Still seeking Somerset
The belle of the consolidation ball continues to be Somerset Medical Center. Two sources with knowledge of the situation have said Somerset's leadership has its pick among four systems for a potential partnership. The finalists include Robert Wood Johnson University Hospital, which was reported previously in Grapevine, Barnabas Health, Atlantic Health and Virtua Health.
"Everybody wants Somerset," one source said. "What they're going to do with it is another question."
Somerset Medical Center had confirmed in early February that the hospital was in discussions with multiple organizations, and declined to provide further comment. Barnabas and Atlantic Health declined to comment, and Virtua was unable to be reached before press time.
The courtship of Somerset is an intense one, as many other New Jersey hospitals that were desirable takeover targets already have traded hands, or already are in the process of being acquired.
Chris Christie has decided to let the federal government run the state's new health insurance exchange, where consumers and small businesses will shop online for coverage under the federal Affordable Care Act. But that doesn't mean Christie won't be held accountable for how well the exchange functions, sources tell Grapevine.
It's estimated that several hundred thousand Jerseyans are eligible for federal subsidies to buy health plans on the exchange; most Americans need to get covered by Jan. 1, 2014, to comply with the ACA's "individual mandate." Open enrollment, when health plans start selling policies on the exchange, starts Oct. 1.
That doesn't leave a whole lot of time for New Jersey's insurers to get the technology in place to facilitate the sale of policies on Internet exchanges. But the timing is noteworthy for another reason, too, an insider points out.
"That is roughly a month before the gubernatorial election. Getting the implementation (of the exchange) right is an enormous challenge, and the timing just raises the bar further," notes a well-connected Trenton watcher. "It would be really unfortunate for this to become a political issue — the health insurance of thousands of New Jerseyans is at stake."
Grapevine reports on the behind-the-scenes buzz in the business community. Contact Editor Sharon Waters at firstname.lastname@example.org.