Atlantic City's Revel to Terminate $95.4 Million Deal Today
Owners of Atlantic City's Revel Casino Hotel will file a motion this morning in bankruptcy court to terminate a troubled deal to sell the beleaguered property to Florida developer Glenn Straub, according to press reports. The deadline for the $95.4 million deal expired at 12:01 a.m. The undoing of the deal would mark the second time in the last three months a purchase fell through. Revel had a prior agreement with Brookfield Asset Management to purchase the resort for $110 million, but Brookfield backed out of the deal last November. Straub was the second bidder for the resort during the auction. The property, which cost $2.4 billion to build, closed on Sept. 2, 2014, after just over two years of operation.
Straub wants a bankruptcy court judge to approve an extension of the sale deadline to Feb. 28. A hearing on that request is set for Wednesday morning, his attorney, Stuart Moskovitz, told the Associated Press. The Straub deal involves a $10 million nonrefundable deposit. "If Revel terminates this contract, it will cost them tens of millions of dollars," Moskovitz told the AP. "They will never get a bid at these numbers. From day one, Revel was a disaster in every way imaginable."