U.S. Bankruptcy Judge Gloria M. Burns on Friday approved
Revel AC Inc.'s bid to terminate the deal to sell the closed Atlantic City
casino to Brookfield Asset Management Inc. for $110 million.
A hearing for the judge to consider the sale to the
backup bidder, Florida investor Glenn Straub, for $95.4 million, was scheduled
for Jan. 5.
Neither Brookfield nor Straub were at the hearing or even
on the phone participating in the hearing in Camden.
Brookfield abandoned the deal after being unable to reach
terms with municipal bondholders owed $118.6 million for the central utility
plant that heats and cools the $2.4 billion Revel.
A law firm representing the bondholders said in a filing
Thursday evening that it had engaged "in substantive discussions with Brookfield
and made reasonable but meaningful concessions that would have allowed the
Revel to reopen its operations under Brookfield ownership."
John Cunningham, Revel's lead bankruptcy attorney, took
issue with that characterization at Friday's hearing.
Cunningham said Revel met with bondholders in July to
discuss a proposal on the utility plant debt that would have helped entice
potential buyers.
"They wanted to engage in a game of chicken with any
buyer we ultimately selected," Cunningham told the judge.
"From what I know from talking to Brookfield, I
don't believe any of the their negotiations were meaningful or
reasonable," Cunningham told the judge.
Now bondholders are back to square one with a Revel
buyer.
Cunningham said Straub plans to reject the utility-plant
contract.
Source: Philly.com
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