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Bankruptcy Judge allows Revel to kill deal with Florida developer
Friday February 20,2015 : REVEL DEAL DEAD....FOR NOW
Bankruptcy Judge allows Revel to kill deal with Florida developer.
The latest attempt to offload the bankrupt Revel building in Atlantic City failed Thursday when bankruptcy Judge Gloria Burns allowed the owners to back out of a deal with Florida developer Glenn Straub on grounds that he had not completed the sale by the February 9 deadline.
Straub, who made a winning bid of $95.4 million for the $2.4 billion building, paid a deposit of $10 million but failed to follow through due to disputes with the building's tenants, had earlier asked for an extension to February 28 to close the deal, which the judge rejected.
Judge Burns ruled that Straub's $10 million deposit remain in escrow as the developer's legal representatives vowed to appeal the decision.
"The history of this case is long and tortured," Judge Burns said, observing that the terms of the contract did not allow Straub to wait until the former Revel tenants' legal appeals were resolved before closing on the sale.
Revel attorney John Cunningham told the court that his clients would request that they be allowed to keep Straub's $10 million deposit. In a previous failed sale agreement, a Canadian bidder who withdrew lost an $11 million deposit to Revel's owners.
The appeal process is likely to take some time, meaning that the Revel issue is likely to remain in the media spotlight for a while yet.
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