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Revel AC asks court to terminate $95.4 million asset sale agreement
By Caroline Salls
Pittsburgh, Feb. 10 – Revel AC, Inc. requested court approval to terminate its $95.4 million asset purchase agreement with Polo North Country Club, Inc. in light of Polo North’s failure to close the sale, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of New Jersey.
Revel also objected to Polo North’s emergency motion to stay and/or extend the closing date pending adjudication of the possessory rights claims of ACR Energy Partners, LLC, IDEA Boardwalk, LLC and several tenants.
Revel AC is also looking to keep Polo North’s $10 million deposit toward the purchase price.
On Jan. 21, the U.S. District Court for the District of New Jersey denied stay motions, allowing the sale to Polo North to proceed free and clear of the possessory interests of ACR, IDEA and the tenants.
However, on Feb. 6, the Third Circuit Court of Appeals reversed the stay denial order and sent the case to the district court for entry of an order granting a limited stay of the sale order as it pertains to IDEA. Revel said the sale was free to go forward in all other respects.
On Feb. 8, the district court also entered a temporary stay of the sale order in connection with the possessory interests of ACR and the tenants pending a ruling on a reconsideration motion.
Under the asset purchase agreement, Revel said Polo North was contractually obligated to close the sale by Jan. 23, which it did not do. The purchase agreement gave Polo North until Feb. 9 to close the sale before Revel AC could terminate the agreement.
The company said Polo North did not close the sale by Feb. 9, prompting Revel’s decision to terminate the purchase agreement.
Revel, an Atlantic City, N.J.-based gaming and entertainment company, filed for bankruptcy on June 19, 2014. The Chapter 11 case number is 14-22654.
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