Though a hearing on the sale of Atlantic City’s closed Revel casino was postponed last week, Revel attorneys still asked a federal bankruptcy judge for more room to sell the property in an appearance before the court.
According to the Wall Street Journal, attorneys for the bankrupt casino asked Judge Gloria Burns for breathing room in their attempt to sell the property for $82 million to Glenn Straub, a Florida-based developer.
Burns has ruled that she can’t approve the sale while a previous sale order is being appealed in federal court. Straub is trying to buy the property for a second time. He previously agreed to a $95.4 million deal after Burns ruled he could buy the property free and clear of leases from tenants.
Those tenants, however—which operated a profitable nightclub and restaurants—appealed that ruling. A federal appeals judge then ruled that a sale could not go forward without considering the tenants position while the full appeal of Burns ruling on the leases is underway.
During a hearing Monday, John Cunningham, a lawyer for Revel, said there were several paths Revel could take, but each comes with its own set of difficult complications, according to the Journal.
Straub, for example, could seek to close on the court-approved $95.4 million deal, but Straub later told the Journal he will not pay that price. Straub said he still intends to close on the $82 million deal by a March 31 deadline, despite the judge’s ruling.
“It doesn’t mean anything,” he told the Journal, referring to Burn’s decision. “There are all kinds of ways to get properties sold.”
Straub also said he will not seek a compromise with the tenants.
“We don’t negotiate,” he said. “They are trying to get something they are not entitled to.”
The sale also could move forward with either a new sale motion to Straub or to one of several last minute buyers that have expressed interest—but not formally proposed buying—the property.
Burns has previously said any meaningful offer for the property could be considered.
Revel could also move into Chapter 7 bankruptcy and liquidation, but that is opposed by Revel and Wells Fargo, which is financing the current Chapter 11 bankruptcy proceedings.
A new hearing date for the sale has not been announced.
