It seems fit that on the third anniversary of the grand opening of Revel Casino, U.S. Bankruptcy Judge Gloria Burns finally made a decision on it’s fate. During Thursdays court hearing Burns she said would approve the previously denied $82 million sale to Polo North’s Glenn Straub.
Revel Casino shut it’s doors on September 2nd, and has been in back and forth litigation ever since. There had been a previous bid of $110 million from Brookfield Property Partners. However that fell apart due to the inability to come to an agreement with Revel’s Sole power supplier, ACR Energy LLC, and other tenants who stand to lose millions of dollars.
Why Revel Casino Sold to Straub Went Through This Time
Judge Burns had been holding off on approving the sale to Straub for an opportunity to get higher bids, but they never came. There had been speculation on other bidders coming to the forefront, but according to Burns, “there’s no funding left”. Though she acknowledges, “I know there is unhappiness with the buyer”. However, with the threat of Well’s Fargo pulling the plug on funding the already $64 million chapter 11 case, it seems the judge didn’t have much of a choice.
Lawyers for former tenants such as HQ Nightclub, ACR energy, amongst others, were at the hearing today. But it proved to be of no avail. Without Burns addressing the rights of the former casino, she went through with the $82 million sale. The sale could be closed as quickly as Friday, April 3rd. This has been an outstanding issue since the beginning, which turned away other potential buyers prior to Glenn Straub. Straub agreed to drop his demand of being free and clear of all tenants leases. According to Burns these issues should be dealt with outside of bankruptcy court.
Although there are many people with great skepticism of Glenn Straub, I can’t imagine him hurting or putting Atlantic City in any worse of a financial position than it already is. He is promising a lot, so after months of court hearings and litigation it is time for Mr. Straub to put his money where his mouth is. I can’t wait to see how this all turns out.