The proposed bid to purchase the recently shuttered Revel Casino in Atlantic City may already be in jeopardy as U.S. Bankruptcy Court trustee Roberta DeAngelis has objected to the bid submitted by real estate mogul Glenn Straub.
In a 12-page document filed on Friday, DeAngelis objected to both the $3 million break-up fee and the September 23 auction date requested by Straub. DeAngelis feels that the $3 million fee is inappropriate since the property is currently in bankruptcy. The new auction date was objected to because it fails to give enough time for other interested parties to submit a bid.
Either They Sign the Contract or They Don’t
Despite putting up a bid of $90 million with $10 million already in escrow, it appears that Straub isn’t too concerned about the objection. He claimed to be unaware of the objections raised by DeAngelis and had a response ready when informed of the filing by the Press of Atlantic City.
We are cash buyers. We try to get things done and move on,” Straub said. “I don’t do this for the $3 million. Either they sign the contract or don’t.”
Straub doesn’t appear to be interested in waiting for other bidders and may be willing to pull his bid rather than wait. He commented, “There are only so many people who can qualify to buy. I have a window right now. If they are not interested, give me my deposit back.”
Bidders Need More Time
The emergency motion to change the bid deadline is set to be heard this week and the September 23 deadline leaves insufficient time for bidders to act, according to DeAngelis.
Bidding for the property had been open well before the casino closed. Tours were being provided to prospective bidders right up until the Revel shut down on Sept. 2, but nobody pulled the trigger.
According to DeAngelis, “now that (Revel’s) operations have been closed, potential new bidders should be provided sufficient time to become qualified bidders and present their bid.”
Casinos Will Not Dominate the Property
When Revel was first built, it was one of the most ambitious casino projects in Atlantic City history. Should Straub take over the property, the role of gambling will be secondary to the property’s future.
Straub plans to have a casino in the building, but he will let a third party operate the casino and the operation will be a secondary enterprise.
“We’re not going to let a building be dominated by a casino,” he said.
A multi-purpose complex with a casino as a small part of the business could be the type of business to flourish in Atlantic City in the future. The $2.4 billion failure of Revel along with the other recent casino closures is proving that a change is needed for the Atlantic City economy. Straub’s complex could be part of that change.