Governor Chris Christie is putting a positive spin on the bankruptcy filing by Atlantic City's newest casino and hotel. The New Jersey governor says the filing actually shows confidence in Revel because investors are exchanging debt for stock in the company.
But David Cay Johnston from the Columbia Journalism Review said the reason the bond holders are accepting equity is because they don’t have a choice.
“What are they going to do? Foreclose on the property? Then there won’t be a casino license and they’ll get nothing. Better to take the risk they might make something in the future, than take a total lost,” Johnston said.
WNYC’s Amy Eddings spoke to Johnston Wednesday. You can hear their conversation by clicking the link above.