Revel Casino Closed on September 2 and May Never Host Gambling Operations Again
After a day in which the Revel Casino Hotel saga entered an auction, the judge adjourned without a resolution of who will own the bankrupt property. The adjournment will last until next Tuesday, when a decision is expected. The judge called an end for Wednesday, in anticipation of a Jewish holiday that would close down legal proceedings for the next 6 days.
At the end of the session, stalking horse bidder Glenn Straub expressed frustration to reporters. Straub said that the Revel Casino lawyers appeared to be “dragging their feet” throughout the day. He also hinted that he and his business associates only have so much time they can wait before a decision is rendered.
Straub Frustrated at the Lack of Resolution
Straub, who entered a $90 million bid when he appeared to be the only bidder, told the Wall Street Journal, “It’s a shame. We have a limitation as to how long we can wait around.”
Straub’s Lawyer Complained about Secrecy
Chris Galle, a lawyer who represents Glenn Straub, also called into question the way the proceedings were being conducted. He said that much of the process was being conducted behind closed doors, without the kind of transparency one would expect from a bankruptcy auction. Glenn Straub is an old hand at such processes, having acquired the Polo North Country Club in Florida in a similar process over two decades ago.
Galle told The WSJ, “The auction process was supposed to be open and transparent. It was not. It was secretive with closed door meetings and private negotiations, from which Mr. Straub and I were excluded. ”
When asked about the complaints, a spokesman for Revel Casino declined to comment.
Mysterious Bidders
Newspapers and local TV stations still have not been able to learn who the 11th-hour bidders are. Speculation centers around Richard Muruelo, a local real estate developer whose family has been involved in Atlantic City for years. Last week, Muruelo expressed a desire to bid on the Revel Casino. Last year, he made a failed attempt to buy the Trump Plaza.
The Revel Casino is a breathtaking 47-story casino resort which opened in 2012. The $2.4 billion piece of property is expected to sell for a fraction of its original cost, after it closed its doors on September 2nd. During its two years of operation, the Revel Casino went through 2 bankruptcies, including the latest one, which prompted the sale.
Florida Developers
Glenn Straub is a Florida developer who owns a dozen properties, and has claimed he wants to help Atlantic City return to the type of city it was went he visited it as an 8-year old child. Straub might have rubbed long time Atlantic City economic leaders the wrong way with the brash words he’s used in the New Jersey newspapers.
When asked about his original bid, Straub referred to it as “one little acquisition.” He went on to describe himself and his business associates as people who improve cities, while deriding the notion that he was buying Revel merely to operate a casino. He hopes to build a 35-story building next to Revel that would host a university that would attract “geniuses” who would tackle world problems, like nuclear waste disposal.
Possible Railway Link
Straub also has discussed his plans to build a railway link in the city, which would help Atlantic City’s infrastructure and make it easier to travel and transport good from cities like New York City and Philadelphia.
He described his business plans as a kind of mission, saying of Atlantic City, “Somebody’s got to tie it all together. The casinos don’t have time.”
Atlantic City Needs Jobs Growth
Local economic leaders should be happy that the Revel Casino will have an occupant before long. If that occupant is able to create jobs, it should ease the strain on the city’s fragile economy. When Revel’s hotel and casino closed earlier this month, 3,000 workers lost their jobs. Combined with the closings of Trump Plaza and Showboat, the Boardwalk casino industry has lost 8,000 this month alone.
Even if a winner is declared next Tuesday, that won’t be the final word on the auction process. Bankruptcy Judge Gloria Burns will need to give her approval to the transaction. If Glenn Straub loses in the bidding process, he will be given a $3 million “breakup fee” as the lead bidder–a position known as the stalking horse.
