Bankruptcy Judge Postpones Revel Hotel and Casino Ruling Once Again

Revel Hotel and Casino has repeatedly encountered challenges finding a buyer, and these difficulties persisted after a U.S. Bankruptcy Court Judge decided March 13 that she cannot approve a proposed $82 million agreement to sell the property – this time involving a Florida developer.

The troubled hotel and casino has suffered a string of failed attempts to market its assets, even at a time when it has generated the interest of numerous buyers.

Amid these botched attempts, tenants of Revel Hotel and Casino have pursued legal action, filing an appeal which claims that the proposed deal would violate their rights, Reuters reported.

Judge not in position to decide

In a conference call that involved the various parties in the attempted transaction, U.S. Bankruptcy Judge Gloria Burns explained that because she has encountered several limited stays and because numerous appeals have been filed, she lacks the ability to rule on the proposed agreement between Glenn Straub’s Polo North Country Club and the troubled hotel and casino, according to CBS.

The future of the hotel and casino, which cost $2.4 billion to create and has struggled ever since, is uncertain. Wells Fargo, which has funded the bankruptcy, previously indicated it would cut off this support if the Straub deal failed to close, the media outlet reported. As a result, the company might have to file for Chapter 7 bankruptcy, which would involve liquidating its assets.

Series of failed deals

Before the $82 million Straub deal failed to obtain approval, two separate deals also fell through, one involving an $110 million agreement involving an affiliate of global asset manager Brookfield Asset Management and a $95 million deal previously worked out with Straub, according to Reuters.

One crucial factor that is complicating the proposed deal with the Florida developer is that while he insisted he would not be be willing to consent to any agreement keeping the leases of tenants intact, Burns stated that Revel Hotel and Casino could return to court and request that she approve a deal including such features, the media outlet reported.

Amid this delicate situation, several parties interested in buying Revel have recently appeared, the company’s investment banker told the court, according to the news source. However, they have yet to produce offers. While the troubled hotel and casino’s future remains uncertain, Atlantic City is having a hard time balancing its fiscal budget, and city officials have a strong desire to ensure the Revel Hotel and Casino becomes operational once again.