We have a bonafide auction for the defunct Revel Casino in Atlantic City and Glenn Straub isn’t happy.
A Canadian firm has thrown down the gauntlet in the Revel bankruptcy auction and has increased their bid on the property to $110 million. Meanwhile, Straub is complaining on how proceedings are unfolding.
The race to own the former Revel Casino appears to be down to two parties. According to NBCPhiladelphia, Brookfield Properties has emerged as the other challenger for the property and currently has the lead in bidding at $110 million. Straub’s company has yet to counter the latest bid.
New Player is Canadian Firm Familiar with Casino Industry
Brookfield Properties is a global firm based out of Toronto, ON. They currently own casinos in both the Bahamas and Las Vegas. They opened their bidding at $94 million and Straub quickly countered with $95.4 million.
Brookfield then upped the ante and raised their bid to a hefty $110 million, or just over 5 percent of the Revel’s original cost. The auction is still ongoing and Straub has yet to make a counteroffer.
Straub Not Happy With Auction Process
The auction is already off to a rocky start after complaints from Straub over auction procedures. Straub is upset over how the auction is being handled and filed a pair of motions late Monday.
The first asked to force casino lawyers to provide information on other bids received by the casino. Straub claims that Revel attorneys are not honoring a promise to share information on other bids received during the auction. This filing was denied.
His other filing requested the auction be delayed until Thursday. In the filing, Straub also complained about the auction process on September 24. He claims that he and his team were forced to wait for six hours without anything happening.
He further claims that no bids were taken before the auction was adjourned for the Jewish holiday Rosh Hashanah. In the filing, he claimed, “The entire time spent on the trip was completely wasted with significant dollars spent, all for nothing. That six hours went by with nothing whatsoever occurring in public, and with the debtors’ counsel refusing to provide any information at all as to the ‘proceedings’ supposedly taking place behind closed doors, serious concerns arise as to good faith.”
The court denied the request but did schedule a hearing to listen to Straub’s objection on October 20.
Auction Will Continue on Wednesday
The auction is scheduled to continue on Wednesday with the bidding at $110 million. Straub has yet to indicate whether he will continue or how much more he is willing to bid on the property.
Brookfield Properties has yet to reveal their plans for the former Revel property, but one has to assume it will involve some type of casino. Regardless of who wins the property, a casino in some form will return to the property and some of the nearly 8,000 jobs lost this year will be recouped.
Revel was one of four properties to close in 2014. The $2.4 billion casino opened just two years ago and has as many bankruptcies as it does years of operation. Straub described the property as a “monstrosity,” but plans to put in a “genius university” in the property along with a scaled-back casino.