The new Revel casino in Atlantic City announced on Tuesday that it will file for Chapter 11 bankruptcy next month.

The casino was launched in April 2012 and hoped to turn revamp the famous coastal gambling city in New Jersey.

Revel has approximately $2.4 billion in debt attached to the property, according to The Huffington Post.

The Chapter 11 bankruptcy protection will take care of around two-thirds of the casino's $1.5 billion debt and convert over $1 billion of what is currently owed into equity for lenders, according to The Associated Press.

By voluntarily filing for bankruptcy at this point, it allows the operators to remain afloat and open in Atlantic City. The new restructuring is not expected to have an impact on the guests and employees of Revel as the business will continue with normal operations.

The company's chief executive Kevin DeSanctis gave a positive spin to the news in a press release on Tuesday stating: "Today's announcement is a positive step for Revel. The agreement we have reached with our lenders will ensure that the hundreds of thousands of guests who visit Revel every year will continue to enjoy a signature Revel experience in our world-class facility."

Some of the trouble that the casino apparently had was from attracting gamblers away from top competitors in nearby states such as Pennsylvania.

The casino also has had a hard run in the year that saw one of the most devastating storms in the area with Hurricane Sandy which dampened the infamous party town.

Revel was also unique from other casinos in Atlantic City as it was a nonsmoking casino. The casino was forced to change and create smoking areas in an attempt to bring in as many gamblers as possible, according to The Wall Street Journal.