Atlantic City’s Bankrupt Revel Casino Has Been Sold
In a bitterly contested auction, Brookfield Asset Management bought the bankrupt Revel Casino in Atlantic City for $110 million, defeating eccentric Florida real estate tycoon and property developer Glenn Straub, who plans to fight the sale in court.
Brookfield, who also own the Hard Rock Hotel and Casino in Las Vegas as well as the Atlantis Paradise Island in the Bahamas, plan to reopen the Revel, although the company’s spokesperson declined to comment on when they planned to reopen the casino or if would retain its name.
The tumultuous bidding process saw Brookfield go head to head with Glean Straub who had plans to convert the towering structure of the Revel into a think tank which, he envisioned, would “address global problems”, a veritable tower of genii, located on the famous Atlantic City Boardwalk that would tackle the worlds problems such as nuclear waste disposal.
Among other dreams for the building, Straub planned to build another tower and had mentioned other plans that included a high speed ferry to carry people from Manhattan, “Super Jumbo Jets” to fly in Arabian businessmen and a ski resort of elevator equipped artificial mountains.
During the bidding process, Straub’s $95.4 million bid was outdone by that of Brookfield which won with a bid of $110 million who said, via one of their spokespersons that “Revel will remain a hotel and casino”.
Atlantic City Mayor Don Guardian, speaking to the Press of Atlantic City about the sale said: “They’re obviously a company that’s familiar with gaming” who expressed his hope that the new casino will be back in business before Memorial Day.
“There were a lot of doomsayers who said no one was going to bid on Revel” and that at $110 million, the winning bid was “a good chunk of money but still a bargain-basement price” he went on to add.
At $110 million, Revel cost half as much for Brookfield to buy it as it did for the previous owners to build, a price tag that reached $2.4 billion thanks to its opulent décor, hotel, casino, 2 night clubs, 2 concert halls, 13 restaurants and more pools than any other casino on the Atlantic City Boardwalk.
It’s understood that the Brookfield offer, according to the Wednesday court filing, would also include “certain assumed liabilities” and some believe that they will emply some, if not all, of the staff previously employed by Revel. But, a formal sale still requires approval from a Federal Judge which will be confirmed at the hearing set for October the 7th.
However, Brookfield’s plans could be scuppered by the tenacious Straub who has made claims that Revel’s attorneys bungled the auction and had broken rules. Straub said he would take his complaint to the Chief US Bankruptcy Judge, Gloria Burns who he will ask to declare that he take ownership of the Revel.
“It should be awarded to us” Straub said in a statement to the press, “if necessary we’ll go the appellate court”.
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