Bankruptcy battle brewing as judge weighs whether to approve sale of Revel casino for $110M

Industries Associated Press

A New Jersey bankruptcy judge hears arguments Tuesday over whether Atlantic City's former Revel Casino Hotel should be sold for 5 cents on the dollar to a Toronto asset management firm.

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The casino cost $2.4 billion to build and never turned a profit. It closed Sept. 2 after just over two years of operation.

Last week, Brookfield Asset Management won an auction with a $110 million bid for the failed casino.

But the Florida developer who came up short in the auction wants Judge Gloria Burns, in Camden, to invalidate the result and hold a new sale. Glenn Straub filed court papers Monday asking for a new auction, alleging the process was improper and unfair to him.

Brookfield says it plans to re-open Revel as a casino.