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Friday, December 12, 2014

New Jersey court allows termination of Revel Casino's sale, (NYSE: BAM)

A bankruptcy court judge approved an unopposed request to terminate the sale of the Revel casino in Atlantic City to Brookfield Asset Management at a hearing on Friday. Brookfield, which had made a $110 million bid for the casino, backed out of the deal because it failed to reach an agreement with bondholders who owned Revel's power plant.The company, which did not send a representative to the hearing and has not responded in court documents to notices to terminate the sale, stands to lose its $11 million deposit.The power plant is a trouble spot for the Revel and any prospective buyer.After the casino lost construction financing in 2012, Revel was forced to find a new contractor to build its power plant. It contracted with ACR Energy Partners, but to get the deal done was required to back ACR's financing of the project.

Brookfield Asset Management Inc. (Brookfield) is a global alternative asset manager. Shares of BAM fell by 0.33% or $-0.16/share to $48.31. In the past year, the shares have traded as low as $36.47 and as high as $50.77. On average, 563150 shares of BAM exchange hands on a given day and today's volume is recorded at 319918.