Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Bankruptcy Judge Decides to Void Revel Casino Sale

Author: Joel R. Glucksman

Date: December 16, 2014

Key Contacts

Back

A bankruptcy judge on Dec. 12 voided the proposed sale of the Revel Casino Hotel to a Canadian firm that backed out of the deal.

As requested by Revel Entertainment, Bankruptcy Judge Gloria Burns canceled the sale of the casino to Toronto-based Brookfield Asset Management for $110 million, according to The Associated Press. The company won the right to purchase the failed casino resort in a court auction just a few years after its $2.4 billion construction.

Bankruptcy Law articles

After failing to resolve a dispute with bondholders regarding debt from the construction of the casino’s power plant, however, the Canadian firm backed out of the deal, according to the news source. As a result, Revel asked that the sale could be officially canceled in order to pursue acquisition by another bidder.

“They had an outside date to close on Nov. 28,” Revel attorney John Cunningham said of Brookfield, the AP reported. “They preemptively went to the press and announced that they were walking away from this transaction. Quite simply, they have affirmatively repudiated the contract.”

In 2012, Revel lost construction financing and was forced to look for a new contractor to build its power plant, Reuters explained. It contracted with ACR Energy Partners, and agreed to back ACR’s financing of the project in order to complete the deal. This turned out to be a costly decision, and even in bankruptcy, Revel is paying ACR about $60,000 per day before paying for the electricity required for heating and cooling. Turning off heating or cooling could allow mold to grow, which would further damage the worth of the building.

A hearing will be held on Jan. 5 to determine whether Burns will allow runner-up Glen Straub and his firm Polo North Country Club Inc. to buy the casino. Straub eventually bid $95 million during the auction, but lost out to Brookfield.

Straub has proposed a number of potential uses for the former casino resort, including a “genius academy,” according to the AP. This would be a meeting place for the world’s top minds to meet and look for solutions to society’s problems.

As a creditor right’s and bankruptcy attorney with his practice in New Jersey, this isn’t the first time I’ve blogged about the latest bankruptcy proceedings of this Atlantic City casino. Along with the bankruptcy of Trump’s Taj Mahal, check out some of my previous posts regarding Revel Entertainment Group.

  • Atlantic City’s Revel To File For Bankruptcy Again
  • New Jersey’s Revel Casino Exits Bankruptcy Protection
  • Judge Delays Taj Mahal Bankruptcy Filing
  • Trump Entertainment Seeks To Stop Pension Payments
  • Taj Mahal Casino of Atlantic City May File For Bankruptcy

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Corporate Consolidation and Antitrust Issues in Mergers post image

Corporate Consolidation and Antitrust Issues in Mergers

Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]

Author: Dan Brecher

Link to post with title - "Corporate Consolidation and Antitrust Issues in Mergers"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"
Corporate Transactions: Best Practices for Successful Deals post image

Corporate Transactions: Best Practices for Successful Deals

Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]

Author: Dan Brecher

Link to post with title - "Corporate Transactions: Best Practices for Successful Deals"
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!