Despite the crisis with the casino venues in Atlantic City, regulators were hopeful that the ones, which filed for bankruptcy over the year would be reopened and the new beginning was believed to boost the local economy. Several investors expressed interest in buying the venues and according to the information released by the authorities – Revel was supposed to have a new owner – the Canadian company Brookfield Asset Management.
However, it has been officially announced that the Toronto-based investors decided to abandon their plans for obtaining the casino. Yesterday, the spokesperson of the company, Melissa Coley, gave a brief interview and said that Brookfield’s final decision is to terminate the acquisition of Revel.
That announcement put an end to the hopes that the local economy will be slightly improved and at least a small percentage of people, left unemployed, will be hired and given a chance to make ends meet.
According to the initial plan, Brookfield was about to buy Revel for the sum of $110 million and reopen it as a luxurious casino resort but managers were reluctant to give precise information when the new venue will open doors for visitors.
Revel Casino was established two years ago and became notorious for being unprofitable. After some time of struggling to become thriving and competitive, the venue filed for bankruptcy on September 2nd.
The announcement made by Brookfield’s representatives coincided with the protests organized by Taj Mahal’s employees. They protested against the closure of Taj Mahal, which is supposed to take place in the middle of December.
Along with Nevada, New Jersey has always been an appealing gambling destination but things got worse as the state faced the tough competition of the neighboring states.
By comparison, Atlantic City used to generate a revenue, equal to more than $5 billion per year but numbers have fallen to $2,8 billion and they are expected to continue falling.
Melissa Coley also gave a detailed explanation about the sudden turnaround. She said that the main reason about the change in the initial plan was caused by a disagreement between Brookfield and the bondholders involved in the affairs, concerning Revel’s power plant.
Now, when Brookfield gave up on obtaining Revel, the company that became a runner-up during the auction is expected to start over discussions about buying the premises. Glenn Straub has already announced that he is still interested in buying Revel and becoming a key figure on the local gambling market. His intention was to turn Revel into an academy but he was not quite sure if there will be a casino venue on the premises.
