Revel AC $110 million sale to Brookfield approved, objections denied

By Kali Hays

New York, Oct. 7 – Revel AC, Inc. won approval of a $110 million sale of substantially all company assets to Brookfield US Holdings LLC, according to a Tuesday order with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, Brookfield emerged as the winning bidder for the assets Oct. 1, concluding an auction process that began on Sept. 24.

Revel’s $90 million stalking horse bidder Polo North Country Club, Inc. objected to the sale, claiming that the company acted in violation of the bid procedures order by continuing private negotiations during the auction process and made “numerous on-the-fly alterations to deadlines and procedures to assure a successful bid other than Polo.”

Tuesday’s order overruled Polo North’s objection and said that Brookfield “proceeded in good faith in all respects” and “recognized that the debtors were free to deal with any other party interested in acquiring the assets.”

However, the court will still consider objections to the sale made by Polo North and any other party at a hearing scheduled for Oct. 20.

Under the stalking horse agreement, Polo North is entitled to a break-up fee of $3 million and reimbursement of its $10 million bid deposit upon the closing date of the Brookfield sale.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.