The Real Deal New York

Glenn Straub’s Revel Casino deal on verge of collapse

Casino asked judge to scrap deal and keep developer's $10 million deposit

February 11, 2015 09:10AM

The Revel Casino in Atlantic City and Glenn Straub (inset)

The Revel Casino in Atlantic City and Glenn Straub (inset)

After Florida-based mogul Glenn Straub missed the deadline to close on the $95 million purchase of the Revel Casino in Atlantic City, the deal is once again on the verge of falling through.

Straub’s company, Polo North Country Club, asked for an extension of the closing deadline until later in February, according to Bloomberg. Revel, in turn, asked a bankruptcy court to not only drop the proposed sale but also asked to keep Straub’s $10 million deposit, the website reported. A hearing to decide the two matters was scheduled for Wednesday morning.

Earlier this week, U.S. District Court Judge Jerome Simandle scheduled an emergency hearing that halted the pending sale. Some tenants have tried to block the transaction unless their property rights are protected. An appeals court ruled in favor of one of the tenants late last week, which led others to file similar motions. Straub then threatened to drop out of the deal if it didn’t go forward as previously specified.

Brookfield Asset Management had planned to buy the casino hotel for $110 million, but that deal fell through late last year. Revel, which cost $2.4 billion to build, closed in September 2014, causing more than 3,000 people to lose their jobs.

“It will take months before they can bring anybody in, if they can find any bidder at all,” Straub’s lawyer Stuart Moskovitz wrote in an email to the website. He reportedly also wrote that no other buyer will offer “close to what we are willing to pay.” [Bloomberg] — Claire Moses 

 

 

  • Tim

    Revel must have someone else waiting in the wings….

    • No one is interested. This will another derelict building in the city.
      These lease holders will never get their money back either way jsut destroy the city.

      • TG

        If judge blow this chance to straub, the price can fell below $50 million next time even smaller.

        • jginnane

          Well, the deal is gone. Hooray!

          Now for the $50 million question: what to do about, how to deal with ACR Energy. Because that’s been the issue from when Revel was a going concern, and stated as the reason the first buyer, Brookfield, backed away. Can one buyer pay the additional scratch to take over the energy facility? Can he get the judge to “correct” the terms of the deal(s) so Revel pays no more than anyone else in Atlantic City for the same power? Considering how the public ACR bonds have been discounted in trading in the market, it seems ACR expects about a 50% haircut on their holdings. That, and an agreement to keep energy use in line with area costs, would be a prudent decision by the bankruptcy judge(s).

          • TG

            I would love to put grid line into Atlantic City Electric if possible or technology permitted. At that moment, ACR’s plant will be worthless. Or, a new buyer can working on a ownership agreement. New buyer can exchange 10% ownership for the plant…..

            BTW, if I have 100 million, I may only willing to pay 30 million even less..

  • jginnane

    Now that the sale has stalled over the whole long, unprofitable winter months … you can bet there will be buyers looking for a spring closing, and opening as soon as possible for the primary tourist-and-gambling season. HQ nightclub could re-open in 30 days. I suspect that if the slots are still in place, the entire casino could re-open in even less time. As for the hotel … there have to be a number of floors ready to go.

    As long as Straub hasn’t pre-parked his “water slide for geniuses” apparatus next to the main escalator, you would be amazed at how quickly, and how happily, the entire property can revert to being a going concern.

    • Guest2015

      jginnane, Revel never made money in the Summer. There is a reason nobody wants Revel as a casino. It will not make money.

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