\nMichael Bathon, Bloomberg <\/p>\n
\tRevel AC Inc.\u2019s $95.4 million sale to developer Glenn Straub remains in flux as a federal judge weighs creditors\u2019 pleas to halt a bankruptcy court\u2019s ruling approving the deal, saying it will strip them of rights.<\/p>\n
\tRevel\u2019s creditors including its energy provider, ACR Energy Partners LLC, and tenants of the shuttered Atlantic City casino resort, spent hours Tuesday trying to persuade U.S. District Judge Jerome B. Simandle in Camden, New Jersey, to block the sale while they seek an appeal. Simandle said he would issue a written ruling Wednesday.<\/p>\n
\tThe appeals may jeopardize the sale because Straub might be able to \u201ccut his losses\u201d and walk away, forfeiting his $10 million deposit, his attorney, Stuart Moskovitz, told the judge. The creditors argue they will be \u201cirreparably harmed\u201d by the deal because Straub intends to reject all contracts and leases under the terms of the sale, which would be free of all claims and liens as well.<\/p>\n
\t\u201cWhat my client needs is the freedom to redo the entire concept\u201d of the Revel, Moskovitz said at the hearing, saying it\u2019s highly unlikely the resort would be demolished. Revel could still have a casino, integrate with the boardwalk, have a water park or a university, and could employ about 4,000 workers, he said.<\/p>\n
\tIf the sale is stayed and the creditors seek to impose their purported rights on the buyer, Straub might drop his bid, Moskovitz told Simandle. \u201cMy client would say, \u2018I\u2019d rather lose $10 million now than bleed $5, 6, 7 million a month for the next 3 years\u2019,\u201d Moskovitz said.<\/p>\n
\tNegotiation Advantage<\/p>\n
\tIf the sale isn\u2019t put on hold then Straub would have an advantage in negotiations with ACR, said Craig Martin, a lawyer for the energy provider whose sole customer is Revel.<\/p>\n
\tStraub\u2019s Polo North Country Club Inc. would be \u201cholding a hammer over the tenants head\u201d and could evict them at anytime, Martin told the judge.<\/p>\n
\tACR, which invested about $160 million to build the facility, is Revel\u2019s only source for energy, leading the judge to say he \u201ccan\u2019t foresee a situation where Polo would issue that eviction notice.\u201d<\/p>\n
\tRevel, which opened in April 2012 at a cost of $2.4 billion, was the first new Atlantic City casino since 2003. The bankruptcy, its second, and subsequent closing last September eliminated more than 3,000 jobs.<\/p>\n
\tSale Approval<\/p>\n
\tThe closed casino-resort won bankruptcy court approval Jan. 5 to sell its Atlantic City, New Jersey, property to Polo, the original bidder, for $95.4 million, after an earlier sale at a higher price fell apart.<\/p>\n
\tRevel was one of four casinos that closed last year after New Jersey\u2019s gambling center saw its dominance fade amid growing competition from game rooms in neighboring states. Casino revenue in Atlantic City fell more than 40 percent to about $2.8 billion in 2013 from a peak of more than $5 billion in 2006.<\/p>\n
\tThe bankruptcy is In re Revel AC Inc., 14-bk-22654, U.S. Bankruptcy Court, District of New Jersey (Camden). The Appeals are In re ACR Energy Partners LLC v. Revel AC Inc., 15-cv-302, American Cut AC Marc Forgione LLC v. Revel AC Inc., 15-cv-352, IDEA Boardwalk LLC v. Revel AC Inc., 15-cv-299, IGT v. Revel AC Inc., 15-cv-317, all in U.S. District Court, District of New Jersey (Camden).<\/p>\n
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Michael Bathon, Bloomberg Revel AC Inc.\u2019s $95.4 million sale to developer Glenn Straub remains in flux as a federal judge weighs creditors\u2019 pleas to halt a bankruptcy court\u2019s ruling approving the deal, saying it will strip them of rights. Revel\u2019s…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8560","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8560"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8560\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}