An affiliate of Brookfield Asset Management won the auction for Atlantic City’s bankrupt Revel Casino Hotel with a $110 million bid. The auction for the hotel and casino, which cost $2.4 billion to build, ended early Wednesday.
The losing bidder told Reuters he planned to fight the sale in court. Florida developer Glenn Straub told Reuters by phone he would “absolutely” challenge the auction result in court, saying he was prepared to bid at least $134 million.
Straub said he would challenge the sale next week in the U.S. Bankruptcy Court and through appeals courts if necessary.
Revel Casino opened its doors in 2012 and closed Sept. 2 after filing for its second bankruptcy in June. It was meant to be a Las Vegas-style resort, but its fine dining, stunning design, and entertainment did not catch on in a city that relies on bus tours and buffets.
Straub qualified as the backup bidder at $95.4 million, which would take the place of Brookfield if the Canadian company could not close the sale. Brookfield ultimately was able to pull through.
Revel Casino had agreed to use Straub’s initial $90 million cash bid to set the benchmark for other potential buyers. Straub had said he wanted to create a university at the site to attract the world’s brightest minds to tackle social issues such as world hunger.
Revel agreed to pay Straub a $3 million fee for acting as the initial bidder if he did not win the auction.
A hearing to approve the sale is scheduled for Tuesday, Oct. 7 in the U.S. Bankruptcy Court in Camden, New Jersey with Judge Gloria Burns overseeing the case.
Four Atlantic City casinos have closed this year; 12 casinos were open at the start of 2014.
Trump Entertainment Resorts Inc. filed for bankruptcy last month, and has said it could close its Taj Mahal casino as soon as next month.