The ongoing drama for the survival of the Revel Casino Hotel in Atlantic City continues as a judge in bankruptcy court today voided the proposed sale of the property to a Canadian firm.
CBS reported that Judge Gloria Burns granted a request by Revel Entertainment to cancel the $110-million sale of the property to Toronto-based Brookfield Asset Management. Brookfield won a court auction for the $2.4 billion casino resort, but it backed out over a dispute regarding the construction of the casino's power plant.
"They had an outside date to close on Nov. 28," Revel attorney John Cunningham told the Burlington County Times. "They pre-emptively went to the press and announced that they were walking away from this transaction. Quite simply, they have affirmatively repudiated the contract."
Brookfield announced its withdrawal from the Revel buy in late November. Revel has now requested the court allow the runner-up for the auction, Florida developer Glenn Straub, be offered the property.
Straub originally bid $95 million for the property, and a hearing has been set for Jan. 5 to consider Revel's request. In October, Straub and his attorney claimed that the auction for the casino hotel was done improperly and in secret, and attempted to block the property's sale to Brookfield.
According to the Burlington County Times, Revel is keeping Brookfield's $11-million deposit.
The Revel Atlantic City cost $2.4 billion and opened April 2012. Since then the property filed for bankruptcy twice before closing Sept. 2, 2014. It was one of four Atlantic City casinos to shut its doors so far this year, with the Trump Taj Mahal preparing to shut down Dec. 20, barring any unforeseen deals.