Yesterday, the Court gave the nod to the billionaire Glenn Straub and soon he will be the new owner of the shuttered Atlantic City-based Revel Casino.
The venue was to be acquired by the Canadian giant Brookfield Asset Management, but the deal was not completed since Brookfield officials considered Revel’s power plant maintenance to be too expensive.
Judge Jerome Simandle rejected all claims against Straub. Actually, there was a possibility for the billionaire to give up on becoming Revel’s owner. He announced that if the Judge had not ruled in his favour, he would have terminated the deal.
Nevertheless, the Judge gave his consent to the sale and Revel Atlantic City is to be managed by Straub as soon as all paperwork and legal proceedings are over.
What made the Florida developer consider walking out of the deal was the request submitted by Revel’s “tenants”. Officials in charge of the restaurants and nightclubs, located within the resort wanted the sale to be halted, so they are given enough time to appeal the terms proposed by Straub.
Stuart Moskovitz, Straub’s attorney, said that he is absolutely convinced that the Judge has arrived at the most sensible decision and enabled the soon-to-be owner to get started and make the first attempts for getting his money worth.
The Judge said that he was well-aware of the fact that there was no alternative that could be beneficial to both parties. He added that the “tenants” might be affected in a negative manner if Straub is allowed to proceed with the purchase. However, if Revel’s acquisition was halted the economy of Atlantic City would be harmed.
And the worst of all is that no other investor apart from Straub, who has expressed interest in Revel’s purchase. In other words, if the current sale is not completed, the venue might not find its new owner anytime soon.
Nevertheless, people with knowledge of the matter expect the tenants to appeal yesterday’s Court decision.
Straub’s attorney announced that the next step his client was going to take was complying with the previously announced closing date – February 7th. Straub has already proposed several projects for utilizing the closed venue. The former Revel Casino might be transformed into a water park or a hotel.
Sad as it may seem, Revel Caisno failed in consolidating its positions on the market. It was available for players for two years only and it did not turn a profit. Apparently, the Judge has made the best decision since the economy of New Jersey needs urgent diversification and revitalization and Revel can play a key role in that process.
