Revel AC secured creditor objects to revised sale deal with Polo North

By Kali Hays

New York, Feb. 26 – Revel AC, Inc. creditor IGT objected to the company’s proposed agreement to sell substantially all company assets to Polo North Country Club, Inc. for $82 million, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

IGT holds a secured claim against the company totaling $5.57 million, which has been paid down to “less than one million dollars during the course of the case.”

According to the objection, IGT said that not only is the proposed purchase amount insufficient to pay all of Revel’s secured claims, but that the sale parties have not agreed on allocation of the $82 million cash purchase price.

The creditor said that other lender claims in the bankruptcy case “total hundreds of millions of dollars, secured by substantially all of the debtors’ assets,” meaning that the sale cannot possibly be consummated “free and clear of creditor liens” and should therefore be denied by the court.

As previously reported, a hearing to consider the asset sale is scheduled for March 4.

Revel, an Atlantic City-based gaming and entertainment company, filed for bankruptcy on June 19, 2014. The Chapter 11 case number is 14-22654.

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