Despite the expectations of Glenn Straub to win the auction for the bankrupted Revel Casino Hotel, a new bidder managed to propose a higher bid, which got approved at the last minute.
Yesterday morning, Brookfield Asset Management became the new owner of Revel as it places a bid equal to $110 million.
Brookfield Asset Management is a subsidiary of Brookfield Company, which manages casinos in Las Vegas and the Bahamas such as the Hard Rock Casino.
Glenn Straub was not happy with the way the auction ended, and he is planning to take the matter into court.
His initial $90 million bid was the first and only one which ensured the auction was realized. He explained that at a meeting with the jury which took place on Tuesday.
During the meeting, anything new concerning the deal was mentioned and he had to learn that Revel goes to another buyer the next day, when it was too late.
Straub said that “in the nighttime we could not get a hold of the whole fleet of people that worked on this bid”. He was willing to increase his bid to the maximum of $135 million. “We were willing to go ahead to rebid. We said we needed four more hours to do it. There was no reason to break and to award them the business.”
It is said that Brookfield made their offer on Wednesday, saying the former owners of Revel have six hours to decide. The lawyers responsible for managing the process of the auction said the procedure was followed and Brookfield’s bid is legitimate.
Straub said he had never seen such a one-sided auction, and added that the New York law firm which organized it was not “going to accept any more offers unless you want to do it right now with no time for anyone to look at anything”.
It may not be over yet, as the US Bankruptcy Court is still to approve the validity of the winning bid next Tuesday, the 7th of October.
Straub plans to collect the $3 million fee which is owed to him as consolation for not winning the auction. He will also bring the matter further into court until he feels justice is delivered.
If Brookfield manages to keep their winning bid, their plan is to rejuvenate the connection that was established between the Revel hotel and its two casinos, and to open it again for customers. In August, Brookfield reported to the US security regulators that its Hard Rock Casino is close to reaching $1 billion in debt.
Yesterday, Brookfield announced that the financial problems of Hard Rock Casino will in no way affect the process of acquiring Revel Casino Hotel.
A spokesperson of the company confirmed that ‘we will be in discussions with all parties and partners involved to formulate a feasible plan that ensures the long-term viability of this property as a resort destination.’
