It seems that the sale of the shuttered Revel casino to Florida-based developer Glenn Straub failed to get the final approval of Bankruptcy Judge Gloria Burns once again.
Judge Burns stated during a hearing, held on Friday, that in fact, she does not have the authority to approve the deal, as several appeals of the purchase of the casino had been filed to federal court. If she decided to move the deal forward, that would imminently impact the court motions.
The appeals in question had been submitted by the owners of some of the casino’s former facilities, such as restaurants and nightclubs, as well as ACR Energy Partners, LLC, known to be its energy supplier. Revel’s former tenants believe that they might be asked to leave the shuttered gambling venue, in case Mr. Straub and his company, Polo North Country Club Inc., are allowed to buy it.
During the yesterday’s hearing, Judge Burns said that she would like to pay special attention to several other motions related to the Atlantic City-based casino. One of these had been filed by its energy supplier, asking for permission to shut down Revel’s power plant. The motions in question are to be considered on Monday, March 16.
As for Revel’s sale, Judge Burns stated that there are two possibilities before the shuttered casino. On the one hand, it might be sold to Mr. Straub for the amount of $95.4 million. The developer, however, might be asked to honor the leases of the venue’s former tenants. On the other hand, the casino’s debtors might file a motion for the approval of a new deal for its sale. In this case, the sale will not move forward before all the merits are considered on a special hearing.
Revel Atlantic City closed doors back in September 2014. Since then the venue has been looking for its new owner. Mr. Straub’s offer for the acquisition of the casino for the amount of $82 million was the third one to fail. Revel AC Inc., the venue’s parent company, hoped that it would receive $200 million for it.
The casino opened doors in 2012 and its construction cost to its owners the amount of $2.4 billion.
Stuart J. Moskovitz, Mr. Straub’s attorney, commented that they are not content with Judge Burns’ decision. He also pointed out that they will file an appeal for the deal’s reconsideration.
A few weeks ago, it became clear that Revel has yet another potential buyer – California-based developer Izek Shomof. His partner, Leo Pustilnikov, commented that they have been in negotiations with ACR Energy Partners and the casino’s bondholders, so as to try to reach an agreement that would be beneficial to the shuttered property.
