- Associated Press
In what’s expected to be a contested sale hearing, Revel Casino Hotel in Atlantic City, N.J., will ask a bankruptcy court judge on Tuesday to approve a $110 million sale to Brookfield Property Partners .
Brookfield Property Partners was declared winning bidder on Wednesday at the end of a three-day auction for the property that began last week and continued into this week.
But a Florida real-estate developer has vowed to continue to fight Brookfield for the property. Glenn Straub, who led the bidding for Revel, said the bid from Brookfield was conditioned—a violation of the casino’s court-approved bid rules. Mr. Straub started bidding at $90 million in cash and was bid up to $95.4 million before he was topped by Brookfield’s $110 million offer.
Built at a cost of $2.4 billion, 47-story beachfront tower made its boardwalk debut in 2012 but failed to turn a profit, filing its second Chapter 11 case in June.
The casino employed more than 3,000 people before it closed last month. Its retail, food and beverage partners employ hundreds more, court papers show.
On Wednesday, the U.S. Bankruptcy Court in Wilmington, Del., will consider Energy Future Holdings Corp.’s request to pay as much as $18 million in bonuses to 26 top executives for keeping the company on track during this year’s struggle through bankruptcy.
The proposed bonuses are continuations of existing incentive-pay programs at Energy Future, with actual payments keyed to hitting specified business targets.
In court papers, Energy Future said one major program could pay out a maximum of $15.8 million if executives hit their top goals. A second major program provides for quarterly payments, so the company knows what targets were hit and is able to estimate the overall payout.
These bonuses only cover 2014 performance. Next year’s pay incentives will be the subject of later motions, according to papers filed Friday in the U.S. Bankruptcy Court in Wilmington, Del.
Energy Future filed for bankruptcy protection at the end of April, after negotiating the outline of a restructuring with some major creditors. Without enough support to muscle the restructuring strategy through the Chapter 11 process, Energy Future was forced into open-court battles with creditors who stood to lose billions of dollars if the company’s restructuring scenario won out.
Garlock Sealing Technologies will head to court Tuesday to request the bankruptcy court’s approval to begin soliciting votes on a plan for distribution of payments to creditors.
The plan comes after a controversial ruling that placed the company’s asbestos liability at $125 million—much lower than asbestos claimants’ lawyers had estimated. Some creditors have asked for the ruling to be reconsidered.
Earlier this year, Judge George R. Hodges of the U.S. Bankruptcy Court in Charlotte, N.C., ruled that $125 million represents a “reasonable and reliable estimate” of the amount that Garlock owes individuals who say they were exposed to asbestos in its gaskets, conveyor belts and other products. Attorneys for people who have been or will be diagnosed with mesothelioma, the deadly cancer that can take decades to develop following exposure to asbestos, had argued that Garlock should set aside more than $1.2 billion to cover current and future personal injury claims.
More recently, those attorneys said they have uncovered evidence that amounts to fraud on the court and warrants a new trial to reconsider the amount.
Garlock will request approval on Tuesday to move forward with a bankruptcy-exit plan that sets aside $275 million to satisfy asbestos claimants, pays its secured creditors in full and pays $3.75 million to unsecured creditors that aren’t asbestos claimants.
-Tom Corrigan and Peg Brickley contributed to this article.
Write to Stephanie Gleason at stephanie.gleason@wsj.com. Follow her on Twitter at @stephgleason.
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