Revel AC Inc. pulled the plug Wednesday evening on
efforts to salvage the sale of Atlantic City's Revel Casino Hotel to Brookfield
Asset Management Inc. for $110 million.
In a bankruptcy court filing, Revel said it sent a
termination notice to Brookfield and would ask the court to approve the sale of
Revel to backup bidder, Glenn Straub, for $94.4 million. Of that amount $4.4
million would be paid in $1.1 million annual installments over four years.
The Brookfield deal fell apart last month over
Brookfield's negotiations with bondholders owed $118.6 million for the central
utility plant that heats and cools Revel. The company that owns the central
utility plan is ACR Energy Partners L.L.C.
A hearing on the Brookfield termination is likely Friday,
when a hearing for the judge to consider approving the sale to Straub's Polo
North Country Club Inc. is also likely to be scheduled.
Negotiations with the central utility plant will almost
certainly be problematic in the sale to Straub, who has said he would reject
Revel's contract with the plant.
Revel itself had difficulty reaching terms with ACR over
the level of debt and equity payments Revel would make to ACR for the period
since filing for bankruptcy in June. Revel and ACR apparently reached an
agreement sometime between last Friday and Monday because a hearing on the
issue scheduled for Monday was canceled.
Source: Philly.com
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