The main supplier of energy to the failed Revel Casino-Hotel said Friday that it is on the brink of bankruptcy and may be forced to stop powering the defunct megaresort if it doesn’t start getting paid for its services.
ACR Energy Partners LLC said in a court filing that it “may be forced to commence its own bankruptcy case” if Revel doesn’t start pre-paying for energy service.
ACR has continued powering the beachfront estate of shimmering glass following Revel’s closure earlier this month, hoping to keep mold and mildew at bay and preserve the property’s value for a possible auction in New York City on Wednesday.
But Revel has made merely a "drip-feed of payment," throwing ACR into “an escalating liquidity crisis,” ACR said in the Friday filing.
An attorney for ACR did not return a telephone call for comment.
A Revel spokeswoman could not be reached for comment.
ACR can’t continue supplying energy to the property unless Revel is ordered to make hundreds of thousands of dollars in weekly pre-payments for utility service, ACR told a judge.
ACR said that at a Sept. 29 hearing in Camden it will seek a court order to force Revel to make the payments, which are “necessary to ensure that ACR can continue supporting the hotel and casino for the benefit of all parties, including any buyer of the assets.”
Douglas Carney, an assistant clinical professor of construction management at Drexel University, said that if Revel loses power, fungus is a factor.
“You’ve got a very high humidity environment” in Atlantic City, he said Friday. “That will be almost impossible to control without air handlers operating.”
“One way or another …[that humidity] will find a pathway into the building,” he said.
In the Friday filing, ACR said it has been paid about $2.35 million of nearly $12 million owed for energy services provided to Revel in the last three months. And Revel owes at least $11 million for earlier-provided service, the company told the court.
In early July ACR said Revel, its sole customer, had an average monthly bill of about $2.75 million.
ACR is a subsidiary of a joint venture between DCO Energy LLC and Marina Energy LLC. Marina is part of Folsom-based South Jersey Industries.
South Jersey Industries spokeswoman Joanne Brigandi declined to comment on Friday’s filing.
ACR helped build Revel’s personal power plant, which sits adjacent to the casino-hotel, by raising about $119 million in municipal bonds issued through the state Economic Development Authority, according to court papers.
Dale Finch, director of Atlantic City's Licensing and Inspections Department, could not immediately be reached for comment.
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