Judge Approves Revel Sale Despite Objections From Tenants
Despite appealing the terms of the sale, current Revel tenants and the casinos utilities provider have been told that the sale of the casino has been approved to Florida property developer, Glenn Straub.
The Revel Casino saga has been dragged out far longer than it should and, after bankruptcy Judge Gloria Burns finally authorized the sale of the casino to Glenn Straub after he sued to stop the sale to himself. This time, the courts have been brought in to mediate between the Revel Casino, its current tenants and the utility company whose $3 million a month bill was the reason Brookfield Asset Management cancelled their agreement to purchase the casino last year.
On Wednesday, U.S. District Court Judge, Jerome Simandle denied a bid by the current tenants of the Revel to put the sale on hold while they appealed the terms of its sale. The current tenants, which include restaurant’s and night clubs, have said that they could be wiped out if the $95 million sale is allowed to go through as planned.
Glenn Straub has launched a vicious assault on the Revel and has used its current status to demand a variety of concessions that, if not met, would result in him walking away from the deal. At one point, he even sued to stop the sale to himself after the judge authorized the sale, the terms of which he disagreed with.
The latest concession granted by the Judge at Straub’s request sees him free from any obligation to honor any agreements in place with the current tenants with regards to their leases.
According to the court papers, Judge Simandle said: “Such concerns would not sufficiently outweigh the far more prevalent interests in facilitating the success of bankruptcy proceedings and enabling such proceedings to reach finality.”
Straub’s attorney, Stuart J. Moskovitz, when asked about the appeal launched by the tenants said his client would be more than wiling to walk away from the deal if the appeal was allowed to go through, even if that meant losing his $10 million deposit.
“This now gives my client the opportunity to put in motion what he set out to do: Begin the turnaround of Atlantic City, which, as we all know, is currently on a severe downward spiral.” said Moskovitz in an email to the Wall Street Journal.
As well as the Revel’s tenants appealing the sale, the casinos utility company, ACR Energy Partners LLC, also appealed the deal, with the Judge dismissing it on similar grounds. ACR will now begin negotiations with Straub’s Polo North Country Club for a new contract.
Stuart Brown, ACR’ Attorney, said: “We expect that the negotiations will result in a mutually agreeable business relation with Polo North.”
As it stands, there is still no clear indication as to what Straub plans to do with the Revel which was built at a cost of $2.4 billion but went bankrupt and was forced to shit down in September of 2014, one of 4 Atlantic City casinos to close that year.
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