Glenn Straub has finally been declared the winning bidder for the defunct Revel casino in Atlantic City. Unfortunately, he will likely fight the decision to try to get a lower sale price.
According to the Press of Atlantic City, a federal bankruptcy judge declared Polo North Country Club as the winning bidder for the Revel property at $95 million. While it appears that owner Glenn Straub has finally gotten his way, he’s still not happy with the price.
Heading into the proceedings on Monday, Straub was looking to have the final sale price of the casino reduced from $95.4 million to $87 million. Polo North contends that their initial bid of $90 million should stand and that the $3 million break up fee should be applied to the final price, reducing it to $87 million.
Judge Could Sign By Thursday, But Straub May Challenge
In the end, Chief U.S. Bankruptcy Judge Gloria Burns awarded Polo North the Revel for the backup bid of $95.4 million. She threw out both the request to reset the bid to $90 million and an attempt to have the break up fee applied to the price. Burns was quoted as saying, “There was a fair auction. The sales price was fair.”
Straub still contends that the auction was conducted improperly and could still fight Monday’s ruling. Attorney Stuart Moskovitz implied that the company could file papers in U.S. District Court to halt Judge Burns’ decision. Their argument is that they would have never increased their initial bid had they known that the auction would be run inappropriately.
Back in September, Brookfield US Holdings was awarded the Revel casino for $110 million following an auction that was mired in controversy. They later backed out of the deal when the energy provider for the property would not renegotiate their financing arrangement with the casino.
Don’t Expect a Sale Anytime Soon
The odds of the Revel selling anytime soon are long considering the multiple obstacles now facing the property. Straub has proven in the past that he is willing to do whatever he desires and we can expect him to challenge the ruling. A challenge to judge Burns’ ruling will likely delay the sale by several weeks or even months.
Then there’s the issue of the casino’s power provider. There has been little indication that Revel’s power provider is interested or willing to negotiate. Rather, they are threatening to cut all power to the facility due to mounting costs and a potential future bankruptcy. It’s hard to imagine Straub giving in to their demands, so even if he gets his way, there’s no guarantee of a sale.