| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Revel AC Inc. > News item |
Revel AC court denies $82 million sale; disclosure hearing pushed back
By Kali Hays
New York, March 13 – Revel AC, Inc.’s amended purchase agreement with Polo North Country Club, Inc. for the $82 million sale of substantially all company assets was denied on Friday by the U.S. Bankruptcy Court for the District of New Jersey.
In addition, Revel’s March 16 hearing to consider approval of the disclosure statement related to its proposed plan of reorganization has been pushed back for a fourth time to April 2.
As previously reported, Polo North’s revised offer is comprised of $72 million in cash, which has been added to a $10 million cash deposit Revel is currently holding in escrow from Polo North’s terminated bid of $95.4 million.
Polo North was the initial stalking-horse bidder for Revel’s assets. After a September auction, Revel sought approval of a $110 million bid from Brookfield US Holdings, LLC, but that sale fell through.
The company subsequently tried to go ahead with the closing of the sale to Polo North as the designated back-up bidder from the auction, but Polo North refused to consummate the sale by a Feb. 9 deadline included in the agreement, giving Revel the right to seek court termination of the deal.
Under the revised purchase agreement, Polo North agreed to pay the full $82 million for the assets by 10 a.m. ET on March 31.
If Revel ultimately terminates the agreement for any reason, Polo North is entitled to have the purchase amount refunded in full. If Polo North terminates the agreement, Revel will receive a $3 million break-up fee, according to the motion.
Revel, an Atlantic City-based gaming and entertainment company, filed for bankruptcy on June 19, 2014. The Chapter 11 case number is 14-22654.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.