A federal judge has approved the deeply discounted sale of Revel Casino Hotel to the runner-up in last year's bankruptcy auction for the failed Atlantic City resort, according to published reports, but the buyer now wants to have the price knocked down just a little bit more.
U.S. Bankruptcy Judge Gloria Burns on Monday approved the proposed $95.4 million sale to Florida developer Glenn Straub, according to The Press of Atlantic City. Straub’s attorney, however, is seeking to have the price lowered to the developer’s original offer of $90 million.
He is now seeking an order from a U.S. District Court judge blocking the sale to his client, reports said.
Straub, head of Polo North Country Club Inc., was the original “stalking horse” bidder in September after Revel filed for the bankruptcy for the second time since opening in 2012. But his offer was topped by Brookfield Asset Management — a Canadian firm that owns the Hard Rock Hotel & Casino in Las Vegas — which bid $110 million in a subsequent bankruptcy auction for the shuttered $2.4 billion resort.
At the time of the October auction, Straub was designated as the backup bidder, with a $95.4 million offer.
But the deal between Brookfield and Revel’s bondholders later fell apart, reportedly over a dispute tied the financing for Revel’s costly power plant.
That put Straub back in line to win the property, but the judge Monday refused to lower the price tag from $95.4 million to his original bid price, reports said.
“Our $90 million bid should have stayed the way it was,” Straub attorney Stuart Moskovitz told Burns, according to The Press of Atlantic City. “We’re asking to be put in that position — the position we would be in if there weren’t improprieties.”
The newspaper also reported that Revel attorney John Cunningham fought the request.
“I definitely have to admit that this is a most unusual sale motion in that we have an objection by Polo North to their own sale,” he told the judge. “I think in my 23 years of practicing bankruptcy law this is my first time to see that.”
Revel, a towering all-glass property that was once seen as a key to saving Atlantic City, closed its doors Sept. 2 after failing to ever turn a profit in a little more than two years.
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