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\tATLANTIC CITY \u2014 The losing bidder in a bankruptcy court auction for Atlantic City\u2019s former Revel Casino Hotel isn\u2019t ready to fold just yet.<\/p>\n
\tRevel\u2019s management chose Brookfield Asset Management as the winner with a $110 million bid last week. But Florida developer Glenn Straub says the auction was rife with improprieties, and plans to challenge the result at Tuesday\u2019s hearing in Camden.<\/p>\n
\t\u201cWe absolutely are going to challenge it,\u201d Stuart Moskovitz said. \u201cWe believe this entire auction was done improperly, from start to finish.\u201d<\/p>\n
\tAmong the polo-playing developer\u2019s main complaints is that Revel improperly accepted a bid from Brookfield after a specified deadline, that Revel\u2019s attorneys reneged on an agreement to share information with him on competing bids, and that six hours of closed-door meetings on what was supposed to be the first day of bidding was improper.<\/p>\n
\tStraub\u2019s $90 million \u201cstalking horse\u201d bid set the floor for the auction; he will earn a $3 million breakup fee if the casino goes to someone else.<\/p>\n
\tSpokesmen for Brookfield and Revel spokesman declined comment on Straub\u2019s plan to challenge the result, which came after bidding that lasted almost all day Tuesday and ended at midmorning Wednesday.<\/p>\n
\tMoskovitz said Straub is considering whether to make an offer exceeding $110 million at the hearing, which the lawyer says the judge has the power to accept.<\/p>\n
\tRevel, Atlantic City\u2019s newest casino, closed on Sept. 2 after just over two years of operation, during which it never turned a profit.<\/p>\n
\tThe casino hotel cost $2.4 billion to build; the $110 million winning bid represents a 95 percent discount on that price.<\/p>\n
\tBrookfield also owns the Atlantis Paradise Island casino in the Bahamas. It is a global firm with headquarters in Toronto, with $200 billion in assets under management.<\/p>\n
\tBrookfield told securities regulators in August that it was unable to make an interest payment due that month on the Las Vegas Hard Rock and was trying to work things out with its lenders.<\/p>\n
\tThe company said its deals are financed with so-called non-recourse debt.<\/p>\n
\t\u201cIn other words, lenders get the asset if the investment does not work out, but they do not have the ability to go after Brookfield for a bad loan or mortgage,\u201d spokesman Andrew Willis said last week. \u201cThis is standard risk management for asset management firms.\u201d<\/p>\n
\tHe said the company is in \u201cproductive negotiations\u201d with Hard Rock\u2019s creditors.<\/p>\n
\t\u201cAny issue with the Hard Rock\u2019s finances are specific to that property,\u201d and would not affect Brookfield\u2019s ability to complete the Revel purchase, he said.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
ATLANTIC CITY \u2014 The losing bidder in a bankruptcy court auction for Atlantic City\u2019s former Revel Casino Hotel isn\u2019t ready to fold just yet. Revel\u2019s management chose Brookfield Asset Management as the winner with a $110 million bid last week….<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8100","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8100"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8100\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}