It became clear yesterday, March 4, that U.S. Bankruptcy Judge Gloria Burns had not closed the deal for the sale of Revel Casino Hotel in Atlantic City, which was shuttered back in September 2014. What is more, she put off her final say on the matter for another week.
The property was to be sold to developer Glenn Straub for the sum of $82 million. Judge Burns recommended that advisors to the venue should ask for a better price.
As reported yesterday, Izek Shomof, a Los Angeles-based developer, expressed interest in buying the struggling property. His lawyer stated during the court hearing with Judge Burns that he can offer a better price for Revel.
During the past six months, two more acquisition deals failed to be completed and the price of the venue dropped from $110 million to the sum of $82 million that is currently offered by Mr. Straub. The enormous hotel and casino complex opened doors for visitors back in 2012 and the total amount of $2.4 billion was spent on its construction.
Judge Burns told Revel’s advisors that she will not consent to a sale until they are able to convince her that they have paid due attention to all details and have found the best possible offer.
Judge Burns was supposed to give the final approval for the agreement between Revel and Mr. Straub, who had previously failed to finalize the sale. Under the current agreement, the developer was supposed to complete the deal on March 31.
During yesterday’s hearing, Mr. Shomof’s lawyer stated that Judge Burns should not approve the sale. What is more, it seems that his client and his offer to buy Revel was not paid the necessary attention.
Revel’s advisors requested from Judge Burns to allow the sale to Mr. Straub and reminded her that it had been quite difficult for them to find a buyer for the struggling hotel and casino venue.
Revel filed for Chapter 11 protection back in June 2014. The property was shuttered in September and since then, it has been looking for its new owner. A Wells Fargo loan has funded the closed venue. A lawyer who is in charge of the bank’s legal matters stated that it might decide to withdraw its financial support provided that Judge Burns does not approve the deal between Revel and Mr. Straub.
Judge Burns, who postponed her ruling for another week, stated that if Wells Fargo withdraws, a conversion from Chapter 11 to Chapter 7 bankruptcy might be the best thing that should be done for Revel.
