Brookfield Asset Management of Canada has terminated the acquisition of the Revel casino resort in Atlantic City, US.
The company had planned to buy the casino for US$110m from a bankruptcy court, but Brookfield spokesman Melissa Coley said that the decision to terminate stemmed from a disagreement with bondholders controlling debt related to Revel’s power plant.
The cost of operating the plant was one of several factors that kept Revel from becoming profitable. Several casino executives said they believed the long-range plan was to have the plant provide power to other developments expected to follow Revel to its northern corner of the beachfront, but those developments were never realised.
