UPDATE 2-Brookfield wins Revel Casino auction, but loser vows to fight

Wed Oct 1, 2014 12:35pm EDT
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(Recasts with comments from Brookfield and losing bidder)

By Tom Hals

Oct 1 (Reuters) - An affiliate of Brookfield Asset Management won the auction for Atlantic City, New Jersey's bankrupt Revel Casino Hotel with a $110 million bid, but within hours the losing bidder told Reuters he planned to fight the sale.

Asked if he would challenge the auction result in court, Florida developer Glenn Straub told Reuters by phone: "absolutely."

The auction for the shuttered hotel and casino, which cost $2.4 billion to build, concluded early Wednesday behind closed doors in the New York law office of White & Case. Straub said he was in the process of analyzing the Brookfield bid when the auction was declared over.

"I've never seen bankruptcy bidding ever that was so one-sided," he told Reuters. "They said they weren't going to accept any more offers unless you want to do it right now with no time for anyone to look at anything."

He told Reuters he was prepared to bid up to at least $134 million. He said he would challenge the sale next week in the U.S. Bankruptcy Court and through appeals courts if necessary.

Brookfield's spokesman and Revel's spokeswoman declined to comment on Straub's challenge to the auction process.

Revel filed for its second bankruptcy in June, and was put up for sale as a way to raise money to repay its creditors.   Continued...