A Revel attorney on Thursday said "neither side has terminated the agreement" for Brookfield US Holdings to buy the defunct resort.

During a break in a court hearing in Camden, attorney John Cunningham suggested negotiations to sell the property to Brookfield are ongoing. 

Earlier Revel attorney Jason Zakia told a bankruptcy judge that efforts to sell the property “are in flux” but did not specify whether a plan for Brookfield to buy it remains alive.

Brookfield’s $110 million offer won a bankruptcy auction for the property, but last month the company said it plans to abandon the acquisition because it was unable to satisfactorily rework bond debt connected to construction of Revel’s personal power plant.

ACR Energy Partners, effectively Revel's sole power supplier, helped build the plant with $118.6 million in municipal bonds.

Revel's 20-year energy contract with ACR required Revel to repay that debt with about 11.6 percent interest on average.

The contract saddled Revel with financing that continues to dog it in bankruptcy and is at the heart of the snag with Brookfield.

Brookfield can drop the contract, but it's not clear that there's another energy supplier on-hand with the infrastructure needed to power the Revel complex. And without the energy to operate climate-control systems, fungus could quickly savage the shimmering glass resort. 

U.S. Bankruptcy Judge Gloria Burns heard expert testimony Thursday to determine how to reckon Revel's bill for energy services rendered during its bankruptcy. ACR says the bond debt, along with about $40 million in equity financing also used to build the plant, should be part of the calculus. 

The judge hadn't ruled by early Thursday afternoon.

The energy contract at issue, she said, “is very unusual.”

Download The Press of Atlantic City App

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.

PLEASE BE ADVISED: Soon we will no longer integrate with Facebook for story comments. The commenting option is not going away, however, readers will need to register for a FREE site account to continue sharing their thoughts and feedback on stories. If you already have an account (i.e. current subscribers, posting in obituary guestbooks, for submitting community events), you may use that login, otherwise, you will be prompted to create a new account.

Load comments