Revel Casino’s Deal With Glenn Straub Put On Hold By Judge
Revel Casino owners were confident that their deal with Florida developer Glenn Straub for $82 would finally be approved on Wednesday but were once again disappointed as U.S. Bankruptcy Judge Gloria Burns delayed her approval.
Straub has attempted before to complete the purchase of the Revel casino but the deal fell through at the last moment. The company made a second attempt to complete the purchase after working through all the hurdles and expected it to be sanctioned on the 4th of March. A few days before the final decision could be made, Revel Casino received a counter-offer by L.A developer Izek Shomof who was willing to buy the casino for a higher price.
Judge Gloria Burns advised the casino owners to analyze all their options and find a buyer who would pay them the highest price. Casino owners have been trying to sell the Revel casino for a number of months as they are in urgent need of funds. The Revel casino was constructed in 2012 for an estimated $2.4 billion but the owners have not been able to find a buyer who is willing to pay that amount of money.
The Revel casino closed in September 2014 after filing for bankruptcy in June the same year. The casino is currently being supported by a Wells Fargo loan and the immediate sale of the casino is critical for Wells Fargo to continue its financial support. Lawyers from Wells Fargo have already informed Revel Casino owners that are further delay in the sale would result in Wells Fargo withdrawing its financial support. However, the lawyers for the Revel casino are confident that they can close the sale within the next week.
During a hearing in Camden, New Jersey Judge Burns said
I think in order for me to be comfortable with this you need to satisfy me that every stone has been overturned to find the best deal.
The judge has only delayed proceedings by a week but the additional delay has frustrated both Glenn Straub and the owners of the Revel casino. L.A developer Izek Shomof was happy with the result and wanted to use the additional time to convince Revel casino owners to sell the property to Shomof.
Chris Christie, the New Jersey governor along with her emergency manager will be keeping a close watch on the Revel casino sale as they look to revive the declining gambling market in Atlantic City.
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