(Reuters) – The electricity provider for Atlantic City’s Revel Casino Hotel has asked a U.S. bankruptcy court to liquidate the casino, saying the latest deal to sell the shuttered property is unfair. ACR Energy Partners – which built and operates an power plant for Revel because the casino could not raise the money itself – said a deal to sell the property to Florida developer Glenn Straub for just $82 million would leave the utility with nothing. ACR said it was owed more than $12 million before Revel filed for bankruptcy in June, and the casino has racked up $20 million more in unpaid bills since then.
Revel’s handling of the case has saddled the casino with “tens of millions of dollars” of unnecessary costs and a bankruptcy loan that will leave unpaid claims from ACR and others, the utility said late on Wednesday in a motion to convert Revel’s case to a Chapter 7 liquidation. The casino has “no likelihood of rehabilitation” and should be foreclosed under the control of a trustee, who could sell assets more quickly without incurring high administrative costs, it said. The sale agreement with Straub is the latest so far after two other deals failed. The $2.4 billion Revel opened in 2012 with much fanfare, but it has never turned a profit and is now in its second bankruptcy. U.S. Bankruptcy Judge Gloria Burns is scheduled to hold a hearing on the proposed sale on Wednesday in Camden, New Jersey.
(Reporting by Hilary Russ in New York. Editing by Andre Grenon)
Power utility seeks liquidation of Atlantic City’s Revel casino
By Metro Philadelphia
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