Judge Affirms Sale of Revel Casino Over Complaints of Losing Bidder
By David Madden
CAMDEN, N.J. (CBS) -- A bankruptcy court in Camden, NJ today finalized the auction sale of the Revel casino-hotel to the highest bidder, despite the strenuous objection of the runner-up.
Brookfield Asset Management, based in Toronto, won the bidding for the financially insolvent and shuttered facility in Atlantic City with its bid of $110 million.
Judge Gloria Burns heard testimony for several hours today. Florida developer Glenn Straub, the only other major bidder in the auction, complained that the auction process, in its final hours, was rigged against him.
The winning late-night bid by Brookfield had a time limit on it: about seven hours.
"I would have done that on the first day," Straub complained today. "I would have said, 'I'm gonna bid 92 million (or) 94 million dollars but you can't accept any other bids after that.' That would have been ridiculous."
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Straub says that, besides being short of some medication he needed at that late hour, he couldn't get hold of his accountant within the time limit but nevertheless made it clear he was ready to bid higher.
The firm running the auction decided not to delay the bidding any further and accepted Brookfield's bid of $110 million to end the auction.
Today, Judge Burns ruled that the auction was properly conducted and approved the sale to Brookfield Asset Management.
Revel and Brookfield officials hope to complete the transfer of the property by year-end. Brookfield, saying it wants to reopen the casino, would have to apply to New Jersey's Casino Control Commission for a license to do so.
