Tuesday, September 30, 2014

Acrimony surfaces in Revel casino auction



ATLANTIC CITY, N.J. (AP) - The process of seeking a new buyer for the failed Revel casino in Atlantic City is hitting a rough patch.

Florida developer Glenn Straub, whose $90 million bid is the only publicly identified one, asked a judge to delay an auction that resumed Tuesday until Thursday.

Straub claims Revel's attorneys reneged on a promise to share information about other bids that were received.

The court refused to suspend the auction but scheduled a hearing on Straub's objection for Oct. 20.

Auction participants say at least one other bid has been received for the casino-hotel, which cost $2.4 to build and closed after just over two years of operation.

The auction began Sept. 24 but was adjourned for Rosh Hashanah.


In a request to the court filed Monday, Straub asked the judge to direct Revel's attorneys to share details of other bids with him by Wednesday afternoon, and decried the secrecy surrounding the auction, which was being carried out at the New York offices of the casino's bankruptcy lawyers.

In it, Straub said he and others waited around for six hours on Sept. 24 "but nothing happened." No bids were taken, he said, and the auction was adjourned for the Jewish holiday.

"The entire time spent on the trip was completely wasted with significant dollars spent, all for nothing," he wrote. "That six hours went by with nothing whatsoever occurring in public, and with the debtors' counsel refusing to provide any information at all as to the 'proceedings' supposedly taking place behind closed doors, serious concerns arise as to good faith."

A Revel spokeswoman declined to comment.

Source: Philly.com

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