Tuesday, January 6, 2015

Revel backup bidder backing out of deal after winning



In the ongoing saga that is the Revel Casino Hotel, the winning bidder is now trying to reject the deal after a bankruptcy judge approved the sale on Monday.


Florida developer Glenn Straub, who won the $2.4 billion structure for $95.4 million, announced that he plans to go to court in order to terminate the sale, the Associated Press reports, because he wants the casino at a lower price.

Straub is arguing that his original bid of $90 million should remain the purchase price. Plus, he wants a $3 million deduction due to a breakup fee he said he's entitled to after Toronto-based Brookfield Asset Management won for a bid of $110 million.

Bankruptcy Gloria Burns, however, denied Straub's request, saying the price of $95.4 million stands firm.

Because of the decision, Stuart Moskovitz, Straub's attorney, said during a break in Monday's hearing that Straub would not be making any decisions at this time, the AP reports. No court challenge would be brought before Thursday.

Revel was one of four Atlantic City casinos that closed last year. After two years of operation, it never turned a profit.

Straub said earlier that he wanted to build a university "for geniuses," which could also include a high-speed ferry and railway systems at an attempt at rebuilding Atlantic City's image.

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