As previously reported, it is still uncertain whether Glenn Straub is to acquire the shuttered Revel casino or not because prominent real estate investors are expected to propose a bid higher than the $82 million offered by Mr. Straub.
A court filing, submitted mere hours ago, confirms the above-mentioned statement. Carl Goldberg and Howard Milstein will most probably submit a bid amounting to $88 million.
The new proposal comes just on time as tomorrow a court hearing is scheduled and the Revel Casino sale is expected to move forward.
It was also mentioned in the filing that apart from Mr. Goldberg and Mr. Milstein, another investor emerged but the main advantage of the Milstein group is that it has reached an agreement with the current tenants of Revel. In other words, if Goldberg and Milstein acquire the property, tenants will not be forced to cancel their leases.
It was clearly stated in the filing that the so-called Amenity Tenants and the Milstein Group have negotiated the clauses in an agreement under which the latter “will not seek a sale free and clear of the Amenity Tenants’ leaseholds at this time”.
People familiar with the matter remind that namely the tenants turned out to be a major setback for Revel’s sale. There has already been three attempts the casino to be sold at a price several times lower than the expenses for its construction.
Despite the fact that Revel executives have requested a deadline extension until June 30 to prepare the bankruptcy plan, they did confirm that they hope the property to have its new owner as soon as possible.
For the time being, casino officials have to complete the Chapter 11 case no later than April 30th. However, they said they needed more time for dealing with the matter.
In a special filing, Revel officials said that they are actively seeking an alternative for signing a deal with Polo North, while adhering to the amenities included in the agreement.
Stuart Moskovitz, the attorney of Mr. Straub commented on the upcoming court hearing and the next action his client was going to take provided that the Judge approves the sale. Mr. Moskovitz stated that the closure will be “imminent”. He also added that even if Revel executives are granted the requested deadline extension, the sale is not likely to be affected.
