If Glenn Straub wants to buy the Revel Casino, he will have to put up a little more cash. According to Reuters, late bids have come in for the bankrupt casino with an auction expected to take place today, Sept. 24.
A pair of last-minute undisclosed bids were received yesterday for the two-year-old property and will force an auction. Florida developer Glenn Straub had an agreement in place to purchase the casino for $90 million, a bid that will now serve as the launching pad for additional bids.
Bidding to Start at $94 Million
While not specifically named, Reuters did point to the two interested parties as being a casino gaming interest from outside New Jersey and a real estate developer. Bidding will begin on Wednesday at $94 million, a far cry from the $2.4 billion that it cost to build the property.
Reuters did point out that the bids are not a slam-dunk, stating that the offers are still subject to certain terms, such as financing arrangements. However, should they pass all the necessary criteria, it could be a spirited contest.
Doesn’t Mind Competition But Doesn’t Need “Monstrosity”
Straub’s reaction to the news of other potential bidders was a bit mixed on Tuesday. According to the Press of Atlantic City, Straub seemed to welcome new bidders but then took a stab at the defunct casino.
Straub stated via phone interview, “We love competition. I’m in a very competitive sport. The sport of buying things.” Later on, Straub commented that he would not be very disappointed if he didn’t win the auction, claiming, “I don’t need that monstrosity.”
One has to wonder if his comments are just last minute gamesmanship in an effort to perhaps convince other bidders not to fight as hard for the property. It seems unlikely that one would put up $90 million for a perceived monstrosity.
Provided that at least one bidder meets the terms of the bankruptcy auction, the sale will commence on Wednesday in New York. Straub has a clause in his agreement that will pay him $3 million should he lose the bid by $1 million or more. He is in a true win-win situation at this point.
Should Straub win the bid, the property will undergo major changes including the addition of a university. Straub was recently quoted as saying that he wants to add a university for geniuses to work on the major issues facing our planet. He has also stated that casino gambling will be available at the new property, but in a greatly reduced capacity.
Straub’s lawyers claimed that some parts of the property could be reopened in two weeks following the close of the sale, so many in Atlantic City will be interested to see the outcome of the auction. Granted, the casino entity winning the property could potentially go further in restoring some of the lost jobs in the area. Revel lost close to 3,000 jobs when they closed earlier this month.