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By MIKE SPECTOR, ALEXANDRA BERZON and HEATHER HADDON

Revel, the struggling Atlantic City casino, has hired restructuring lawyers and bankers to mull options for reworking a heavy debt load, said people familiar with the matter.

Revel Entertainment Group LLC, whose operating subsidiary runs the casino and carries roughly $1.2 billion in debt, hired law firm Kirkland & Ellis LLP and investment bank Moelis & Co. within the past week, the people said. Discussions on how to address the debt are at an early stage and decisions haven't been made on next steps, the people said.

Revel has been bailed out by investors several times since opening in April and this month revealed it had amended a credit agreement for the fourth time and hired Alvarez & Marsal, a turnaround firm that helps companies conserve cash and restructure operations.

The casino took in less than $8 million in revenue in January, according to state figures released Monday. Revenue dropped 19% from December, making January the second-worst month for the casino since it opened. The sales figures were the second-lowest of all the dozen casinos in Atlantic City. Moody's Investors Service, cut Revel's credit rating earlier this month. The ratings firm said Revel has yet to turn a profit and called the casino's finances "unsustainable."

Kirkland and Moelis often advise companies on bankruptcy filings and other ways to restructure obligations, such as raising additional capital or getting creditors to agree to redo debts outside of court. Revel is considering negotiating a so-called prepackaged bankruptcy that would get creditors on board with a restructuring plan ahead of a Chapter 11 filing and limit the company's stay in court, though it is one of a number of options under consideration, some of the people said. A few key investment firms hold much of Revel's debt, according to several people familiar with the matter.

Revel's chief investment officier, Michael Garrity, said Tuesday, "Revel has consistently worked to increase our financial flexibility, as evidenced by the additional capital we raised in December. We will continue to prudently evaluate various alternatives with regard to our capital structure, and remain focused on providing a signature Revel experience for all of our guests."

After fits and starts, Revel opened last year, envisioned as a project to boost Atlantic City's reputation as an entertainment and convention destination and not just a gambling center. But the nonsmoking casino proved unpopular among gamblers. Hurricane Sandy, meanwhile, closed the casino for several days in late October and early November.

In December, investors contributed $150 million in new debt to buttress the casino's finances.

At the time, investors indicated they wanted to buy time for Chief Executive Kevin DeSanctis to mount a turnaround, according to people familiar with the matter.

Executives have told lenders the casino intends to do a better job of attracting slot-machine gamblers, but have emphasized the casino's low-cost structure as a potential benefit that could help turn around operations, some of the people said. Executives have also pointed to Hurricane Sandy as a one-time negative event that hit the entire Atlantic City market hard, some of the people said.

The managers planned to spend around $10 million on new amenities, including quick-service restaurants and a lounge area with high-limit slot games, a person familiar with the matter said. They intend to make those changes by May, ahead of Atlantic City's crucial summer season, a person familiar with the matter said.

Revel's troubles also have a political dimension. Revel has become a well-publicized symbol of New Jersey Gov. Chris Christie's desire to turn Atlantic City into an inviting weekend destination rather than a quick day-trip venue. The governor proclaimed in the fall that Revel would "change the paradigm in Atlantic City." He helped the casino secure around $260 million in tax rebates to fund nearby improvement projects, as well as an additional loan in 2011.

The main union that represents casino workers, Unite Here, and conservative tax-payer groups, have argued that the help provided Revel with an unfair advantage over rival casinos.

Revel began in 2006 as a Morgan Stanley development, before that bank abandoned the project midway through construction and wrote down nearly its entire $1.25 billion investment.

In early 2011, a group of lenders backed Mr. DeSanctis with a $1.2 billion loan to complete Revel.

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