Revel AC asset bidder Polo North looks to reduce offer or void auction

By Kali Hays

New York, Dec. 24 – Revel AC’s backup bidder for the sale of substantially all company assets, Polo North Country Club, Inc. filed a Wednesday motion supporting objections to approval of the sale to the back-up bidder and asked that its $95.4 million bid be reduced, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, Polo North was the initial stalking horse bid for the assets with an offer of $90 million that increased to $95.4 million during an auction in September. Polo North became the designated back-up bidder when Revel decided to seek approval of a $110 million bid from Brookfield US Holdings LLC.

Brookfield subsequently decided to not proceed with the transaction, and Revel is now seeking court approval of the sale to Polo North for $95.4 million.

However, Polo North claims that its initial offer of $90 million should be the starting point for the assets “because of significant and numerous improprieties in the bid process,” according to the filing.

Polo North is seeking a further reduction of the offer to $87 million, claiming that it earned a $3 million break-up fee included in the stalking horse agreement “because the bankruptcy estate is receiving a significant financial benefit by retaining Brookfield’s $11 million deposit.”

“Polo North would not have increased its bid had it known of the conflict of interest of the law firms running the auction and that the other qualified bidder would be allowed to take control of and dictate the terms of the auction,” the filing stated.

If the court decides that the auction process was “deficient,” Polo North asked that Revel be ordered to proceed with a new auction process and to return Polo North’s $10 million deposit for the assets.

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

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