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No qualified bids in Revel bankruptcy auction, but three offers are under review

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Revel casino could close as early as Aug. 18.
Revel casino could close as early as Aug. 18. - (AARON HOUSTON)

An auction that could have saved Revel Casino Hotel from closing its doors has failed to attract any qualified bids, but a source told NJBIZ on Monday the submissions of three prospective buyers are now being reviewed for financial viability.

The source, which requested anonymity because they are not authorized to speak on the subject, said that “there are three bids out there,” but the bidders need to “show the lender that they’re qualified.”

That means a determination of whether they have the financial wherewithal to support their bid. The names of the bidders were not immediately available.

The news comes after a judge agreed to postpone the auction last week, following a request by attorneys hired to handle the bankruptcy of the Atlantic City gaming hall.

The attorneys said they had received multiple bids by an Aug. 4 deadline and needed time to review the submissions and research buyer backgrounds.

NBC10 in Philadelphia, which was the first to report that no qualified bids were submitted, said Revel’s board of directors was meeting Monday to determine the next steps and whether it will be forced to close the ailing casino.

NBC10 reported an announcement could come soon after that decision is made.

As Revel prepared to enter bankruptcy proceedings in June, ownership told employees they could be terminated as soon as Aug. 18.

The 2-year-old, $2.4 billion casino is in bankruptcy court for the second time. The property has only lost money since opening, falling far short of expectations of attracting a new clientele to Atlantic City and spurring a renaissance of the ailing resort town.

Atlantic City Mayor Don Guardian has said there are six potential buyers for the towering property, one of three casinos in danger of closing. The others are Showboat and Trump Plaza, which could close by Labor Day if buyers are not found.

Revel first filed for bankruptcy in March 2013, resulting in a process that cut its $1.5 billion in debt more than 80 percent. It also resulted in investors exchanging debt for equity in the property.

In the most recent proceedings, a judge last month said she would approve bonuses worth a total of $1.75 million for executives at the casino if they manage to find a buyer, the AP reported.

ALSO ON NJ BIZ:

Revel bankruptcy auction postponed until next week

Special Report: Experts now say Revel may go for pennies on the dollar

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Joshua Burd

Joshua Burd

Josh Burd covers real estate, economic development and sports and entertainment. Before joining NJBIZ in 2011, he spent four years as a metro reporter in Central Jersey. His email is joshb@njbiz.com and he is @JoshBurdNJ on Twitter.

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