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
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 […]
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
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!
