Friday, November 21, 2014

Canadian Firm Walks Away From Revel Buy

Issues related to Revel Casino-Hotel’s power plant have apparently pulled the plug on Brookfield US Holding LLC’s $110-million purchase of the shuttered gaming facility here.

Brookfield spokesperson Melissa Coley said on Wednesday night that Brookfield decided not to move ahead with its court approved purchase of Revel. She said Brookfield’s decision was based on bondholders’ refusal to rework debt connected with the construction of Revel’s power plant, according to the Press of Atlantic City.

Glenn Straub, the Florida developer whose $95.4 million bid for Revel was named the backup offer at a bankruptcy auction, believes his appeal of the award prompted Brookfield’s decision to walk away from the casino purchase.

“We will make the place successful, mark my words,” Straub says.

While Brookfield said it would have run a casino-hotel at the Revel, Straub says that gambling would not be the main draw at the property that cost $2.4 billion to construct.

The construction of the power plant caused Revel to incur more than $1.5 million in monthly power-plant financing fees, which contributed to the casino owner’s fiscal woes.

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