Revel sale to runner up to continue

Atlantic City Bankruptcy judge Gloria Burns ruled Monday that the sale of Revel Casino Hotel to Florida real-estate developer Glenn Straub should go forward at his original bid of $95.4 million, despite his claim that his bid should be reduced to $87 million (see previous reports).

The unusual situation arose after Straub objected to his own original bid in an attempt to get the Revel for an even cheaper knock-down price (the property was built two years ago at a cost of $2.4 billion).

During a hearing Monday at the U.S. Bankruptcy Court in New Jersey Judge Burns overruled the objection.

The Reuters news agency reported that Straub contends the original auction, won by a Canadian company for $110 million which subsequently reversed out of the deal at a cost of $11 million, was blighted and it remains to be seen if he will conclude the deal.

The judge said she would enter an order for the sale at Straub’s original bid to continue, where after he has 30 days to close the deal.

John K. Cunningham, an attorney for Revel, told Burns that a bidder objecting to his own bid was unusual to say the least, and that it was a first for him despite decades of bankruptcy practice.

“This is a case where there is a first time for everything,” Burns replied.

Straub told Reuters that he’s considering all his options, including an appeal of the sale order.