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.
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
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
