Update 3-13-15: Straub deal denied
Judge Gloria Burns of the U.S. Bankruptcy Court in Camden, N.J. refused to approve the sale of Revel Casino Hotel to Glenn Straub’s Polo North company saying she didn’t have the authority to modify and accept the deal while the previous approval is still under appeal from Revel leaseholders, former tenants, and the owner/operator of Revels physical plant that supplies power to the building.
Please see 3-12-15 story below.
In a fourth request of the courts to approve the sale of Revel, issues of jurisdiction and authority have stymied potential buyer Polo North (Glenn Straub). Bankruptcy Judge Gloria Burns indicated the process may have the potential to move from her federal court to a state bankruptcy court and that her court may not be able to approve a modified order since a previous order from her is under appeal. She could announce a decision or new court date on the Atlantic City property as early as tomorrow. Wells Fargo is financing the bankruptcy and urged the judge to act with urgency.
The $2.4 billion Revel Resort sunk into bankruptcy and closed on September 2, 2014. The current bid by Straub is $82 million, which is a modification of his earlier bid of $94.5 million and that modification is still under appeal.
The possibilities only get more complex when considering the fact that a Los Angeles company has publicly stated they wish to buy the property, and an investment banker who has been marketing the property reportedly has had inquiries from 19 suitors, 7 of them in the last week. However, only Straub has made an official bid.
The case is further complicated by the earlier appeal by ACR Energy which owns the physical plant and supplies energy to the property as well as restaurants and nightclubs that have long-term existing leases that Straub has indicated he would not honor.