Bankruptcy Judge Allows Canadian Firm To Back Out of Purchasing Revel Casino
By David Madden
ATLANTIC CITY, N.J. (CBS) -- A federal judge in Camden today approved the request of a Canadian financial firm to back out of its deal to buy the defunct Revel casino-hotel, in Atlantic City.
That puts Florida developer Glenn Straub, who previously lost out in an auction for the property, in the lead position to snap it up at an even steeper discount.
To no one's surprise, Judge Gloria Burns approved the withdrawal of Toronto-based Brookfield Asset Management, which had won the auction in October with a $110-million bid.
The company had won a court auction for the failed $2.4 billion casino resort. But it backed out when it could not resolve a dispute with bondholders over debt from the construction of the casino's costly power plant.
Neither Straub nor his attorney were at today's bankruptcy hearing, so Judge Burns said she is scheduling another hearing for January 5th.
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