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Revel Casino Being Auctioned on September 24
Tuesday September 16,2014 : BROKE ATLANTIC CITY CASINO TO BE AUCTIONED
Judge rules that September 24 auction of the Revel can go ahead.
The Revel casino hotel in Atlantic City, built at a cost of $2.4 billion just two years ago but now bankrupt, can be put up for sale by auction despite efforts to delay the sale.
On Monday New Jersey Judge Gloria Burns in Camden made the ruling after the only bidder - a Florida businessman offering $90 million - clashed with creditors who wanted to slow the rushed sale.
The judge additionally set September 23 as the absolute deadline for competing bids to top the Florida bid by developer Glenn Straub and his Polo North Country Club Inc.
In the event that Straub's bid is not accepted, Revel's liquidators will have to pay him $3 million as a break-up fee.
Revel creditors have complained that potential buyers could use more time to put together competing bids, an argument that the judge did not appear to accept
The hearing was marked by threats of litigation if the auction was postponed. The casino had postponed two previously scheduled auctions due to a lack of bids.
Judge Burns was told that another unidentified party contacted the U.S. Bankruptcy Court early on Monday to state their intent to bid.
The Reuters news agency reports that the court hearing was adjourned for two hours as the parties tried, and failed, to work out a way to postpone the auction to move it past upcoming Jewish holidays.
Bankruptcy auctions often run for days.
Judge Burns said she was concerned that the Rosh Hashanah holiday, which begins at sundown on September 24, would disrupt the process.
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