Bankruptcy judge voids proposed sale of former New Jersey casino to Canadian firm

Industries Associated Press

A bankruptcy court judge has voided the proposed sale of New Jersey's former Revel Casino Hotel to a Canadian firm that has since backed out of the deal.

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Judge Gloria Burns on Friday granted a request by Revel Entertainment to cancel the $110 million sale to Toronto-based Brookfield Asset Management.

The company had won a court auction for the failed $2.4 billion Atlantic City casino resort. But it backed out when it could not resolve a dispute with bondholders over debt from the construction of the casino's costly power plant.

Revel has asked the court to let the auction's runner-up, Florida developer Glenn Straub, buy the property.

The judge scheduled a hearing to consider that request on Jan. 5.