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
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
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!
