Revel files motion to terminate deal with Brookfield Property

Reuters News
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Posted: Dec 10, 2014 1:36 AM

(Reuters) - Shuttered Revel Casino Hotel filed an emergency motion late on Tuesday, seeking approval to terminate its deal with Brookfield Property Partners LP and schedule a hearing to approve the sale to backup bidder Polo North Country Club Inc.

Brookfield won the auction for Atlantic City, New Jersey's bankrupt Revel with a $110 million bid in October, outbidding Polo North Country Club. Florida developer Glenn Straub, who owns Polo, had at that time told Reuters he was prepared to bid up to at least $134 million.

Last month, Brookfield Property made a surprise announcement that it was walking away from its October agreement for the 1,400-room hotel complex, blaming a disagreement over a utility contract for the faltering deal.

It did not provide an official notice terminating the deal at that time, leaving some hope the sale could be rescued.

"Brookfield introduced new economic terms that were unachievable, and Brookfield declined to consummate the sale on the terms and timetable that were agreed to in the original Asset Purchase Agreement," a source close to the sale process told Reuters on Tuesday.

Revel filed for bankruptcy protection for the second time in June, and was put up for sale. It first filed for bankruptcy in March 2013 and emerged two months later.

The case in In Re: Revel AC Inc, U.S. Bankruptcy Court, District of New Jersey, No. 14-22654.

(Reporting by Supriya Kurane in Bengaluru; Editing by Gopakumar Warrier)