ATLANTIC CITY, N.J. (CBSNewYork/AP) – A U.S. Bankruptcy Court trustee is objecting to the proposed auction date for the Revel Casino Hotel and a $3 million breakup fee that would go to a Florida developer if he’s outbid for the recently shuttered site.
The Press of Atlantic City reports that trustee Roberta DeAngelis stated her opposition in a 12-page court document filed late Friday.
DeAngelis said the breakup fee isn’t appropriate in the situation Revel Entertainment faces. She also says the Sept. 23 bid deadline sought by the former casino owners doesn’t provide sufficient time for parties to submit bids.
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.
Revel closed in September, along with Showboat and Trump Plaza.
Atlantic City started the year with 12 casinos. By mid-September it will have eight, and 8,000 workers will have lost their jobs.
The city’s woes were brought on by ever-increasing competition from casinos in nearby states in the saturated Northeast gambling market.

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