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MORE DELAYS IN REVEL SALE
Sunday February 01,2015 : MORE DELAYS IN REVEL SALE (Update)
Winning bidder threatens to pull out of sale as tenants oppose auction deal.
Yet another delay has complicated the auction sale of Atlantic City's Revel casino building following a judicial delay after nightclub and restaurant tenants of the building launched litigation, claiming they would be wiped out by the sale to Florida developer Glenn Straub, who has yet to decide what he will do with the building.
The tenants claim that they have invested tens of millions in their establishments and would be seriously disadvantaged by the bankruptcy auction of the two-year-old building, originally built at a cost of $2.4 billion, to Straub for $95.4 million.
Third U.S. Circuit Court of Appeals Judge Thomas Ambro ruled late Friday that Revel has until 4 p.m. Tuesday to respond to the appeal from IDEA Boardwalk of a federal judge’s decision.
IDEA Boardwalk and other former Revel tenants originally asked U.S. District Court Judge Jerome Simandle to delay the sale but he denied the request January 21, saying that Revel and Atlantic City would be harmed by a delay.
Revel lawyers said Friday that they were confident the appeal would fail and the sale would go through as planned on February 9, however, lawyers representing Straub have threatened to walk away from the deal if the sale is delayed.
That would cost the Florida developer the $10 million he has already deposited, a penalty a potential Canadian buyer, Brookfield Asset Management, similarly paid for withdrawing from its winning Revel bid last year.
In an interesting twist, local media reports indicate that a company that runs Hard Rock casinos for the Seminole Indian tribe has been granted approval to operate a casino in Atlantic City... and its chief executive says he has had conversations with Straub.
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