Source: Revel Casino Buyer Backs Out
ATLANTIC CITY, N.J. (CBS) — A Canadian firm is abandoning its plan to buy the former Revel Casino Hotel in Atlantic City, a source tells CBS 3 Eyewitness News.
Brookfield Asset Management had planned to buy the property for $110 million and reopen it as a casino.
Sources say the deal fell apart over a disagreement with bondholders controlling debt related to Revel's power plant.
Atlantic City Mayor Don Guardian released a statement Wednesday night:
"I am sorry to hear that the Brookfield transaction was not completed. Although Brookfield would have been a good fit for Atlantic City, we will continue to attract new investors. Atlantic City is a resilient city, and better days are still ahead of us. In fact, every investor should know that in just the past two days, we welcomed over 17,000 people for the 99th Annual New Jersey State League of Municipalities Conference. Everyone that I talked to had a great time, and reaffirmed to me just how much they love coming to Atlantic City every year. Without a doubt, Atlantic City is still the place to be in New Jersey."
The $2.4 billion casino opened in April 2012, but it never turned a profit.
It closed in September after a second trip to bankruptcy court.
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