Glenn Straub Wins Revel and Immediately Sues to Stop Sale
After failing to outbid Brookfield in the first round of bidding, then questioning the validity of the bidding to contesting the sale amidst claims of a conflict of interest, Florida property developer, Glenn Straub was finally awarded the rights to purchase the bankrupt casino on Monday, Straub immediately filed papers with the courts to prevent the sale of the casino, to himself.
It appears Revel Casino Has Been Doomed from the Start
The Revel Casino has been doomed from the start and, after losing three high ranking executives to a plane crash, being declared bankrupt twice and finally closing down, it seems its tale of woe has yet to end after its original buyer puled out and now its backup buyer has gone to court to prevent the sale to himself.
After Toronto based asset management firm, Brookfield, pulled out of the sale upon being confronted with a $30 million a year utility bill, it fell to Glen Straub to purchase the beleaguered casino but it would appear as if the Florida property tycoon is suffering from buyers remorse as it looks as if he is doing everything possible to ensure that the sale of the casino is never finalized.
Straub’s main complaint is the price of the sale and even though his bid was less than that of Brookfield, he felt he should have been awarded the casino. Now that he has won the rights to the casino, the price has once again proved to be too much for him as he no longer wants to pay $95.4 million, his last bid, but $87 million which is the $90 million of his first bid, minus a $3 million “breakup fee”.
Straub has implemented court actions to prevent the sale of the casino at the fee the judge approved, and instead is hoping to get the billion dollar casino for even less, which is an extremely unusual request if you consider how much effort he put into making sure the sale didn’t go through.
Revel attorney, John Cunningham said, “This is a most unusual sale motion in that we have an objection by Polo North to their own sale. I think in my 23 years of practicing bankruptcy law, this is my first time to see that.”
It would also appear that Glenn Straub has little concern about the eventual outcome of the sale after his attorney, Stuart Moskovitz said that Straub, “is not making any decisions now”.
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