Trustee objects to parts of proposed Revel deal

AP News
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Posted: Sep 13, 2014 1:28 PM

ATLANTIC CITY, N.J. (AP) — The proposed auction date for the Revel Casino Hotel is too soon and a $3 million breakup fee that would go to a Florida developer if he's outbid for the recently shuttered site is inappropriate, a U.S. Bankruptcy Court trustee said.

Trustee Roberta DeAngelis stated her opposition in a 12-page court document filed late Friday, The Press of Atlantic City (http://bit.ly/1uMGW67) reported.

DeAngelis says the Sept. 23 deadline sought by the former casino owners doesn't provide sufficient time for parties to submit bids.

She also says the breakup fee isn't appropriate in the situation Revel Entertainment faces, adding that if a breakup fee were to be approved, it would have to be proven to "preserve the value of the estate."

Revel opened a little more than two years ago amid high hopes of turning around Atlantic City's struggling casino market. But the $2.4 billion resort shut down Sept. 2 and about 3,000 employees were left out of work after it failed to find a buyer before an earlier scheduled auction.

Glenn Straub has offered $90 million cash for the property, and he would get the breakup fee if another bidder comes in at least $1 million higher than his offer. Straub has already put $10 million cash into escrow for the potential sale.

Straub told the newspaper he wasn't aware of the trustee's filing, but said Revel is just one of many projects he's involved in.

"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."

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Information from: The Press of Atlantic City (N.J.), http://www.pressofatlanticcity.com