Meeting Scheduled Monday to Try to Save Revel Deal

Brookfield US Holdings pulled out of a deal to buy Revel over a dispute with the plant supplying power to the failed casino.

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A bankruptcy attorney for the failed Revel casino hotel has scheduled a meeting Monday in New York in an attempt to save the deal to sell it to Brookfield US Holdings for $110 million.

Brookfield abandoned the deal when it could not come to an agreement with the power plant nearby that was constructed at the same time as Revel and has the casino as its sole client. ACR Energy Partners, which controls the plant, has not been able to reach a deal with Brookfield.

“This is the Cold War,” a source familiar with the deal told the Wall Street Journal. “If one of them blinks and goes for the draconian option, then they both die.”

Monday’s meeting may not even have Brookfield, a Toronto property management company, in attendance. Revel’s lawyer told a bankruptcy judge he could only ask.

If Brookfield doesn’t proceed with its auction victory, Florida developer Glenn Straub is compelled to buy Revel with his $95.4 million backup bid. He wanted to put a “university for geniuses” at the site, and said if his plan didn’t work, he could always blow up the building.

[WSJ | Inquirer]