Revel to exit sale deal with Brookfield, looks to fix Polo North sale

By Kali Hays

New York, Dec. 10 – Revel AC, Inc. asked for authorization to terminate its $110 million asset purchase agreement with Brookfield US Holdings LLC and move ahead with the sale of substantially all of its assets to initial stalking horse bidder and backup bidder Polo North Country Club, Inc. for a total purchase price of $95.4 million, according to an emergency motion filed late Dec. 9 with the U.S. Bankruptcy Court for the District of Delaware.

Revel says that Brookfield announced on Nov. 19 that it intended to “walk away from the transaction” because some company bondholders refused to rework debt connected to the construction of Revel’s power plant.

The sale transaction failed to close by the Nov. 28 deadline, giving Revel the power to terminate the purchase agreement.

Revel has delivered a termination notice to Brookfield, which will take effect at 5 p.m. ET on Dec. 12.

As previously reported, Polo North objected to the purchase agreement with Brookfield, claiming the September auction process violated bid procedures, but was denied a request that a new sale auction be opened.

Revel named Polo North the backup bidder in the Oct. 7 order that approved the Brookfield purchase agreement.

A hearing to consider termination of the agreement is set for Dec. 12.

Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on June 19. The Chapter 11 case number is 14-22654.

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