A dispute over utilities that is keeping Atlantic City’s former Revel casino from reopening is getting worse.
Its lender says the power plant providing limited electricity to Revel is in danger of failing because it is not being fully paid for the service.
Bank of New York Mellon is seeking to intervene in a federal lawsuit between ACR Energy Partners and Florida developer Glenn Straub, the casino’s new owner.
Under a temporary arrangement, ACR is providing limited power to the building, and Straub is paying the bank.
But the bank says ACR is not being paid the full rate, and as a result, is operating at a loss.
The bank says ACR is operating only by drawing on the bank’s collateral, which may soon be cut off.