On April 20, U.S. Bankruptcy Court Judge Gloria Burns ruled that Straub, who paid $82 million for the property, has the right to seek new tenants or renegotiate with the former tenants, which include nightclubs and restaurants, according to The Associated Press.
“What happened was a fairly routine thing that happens in a lot of bankruptcy cases: The debtors rejected the term of the lease, meaning the debtor no longer has to abide to the terms of the lease,” a source with knowledge of the case told Philadelphia Business Journal.
Tenant rights
Regardless, Judge Burns stated previously that the expected purchaser would have to respect Section 365(h) of the bankruptcy code, which says that tenants may keep their rights to possession, Philadelphia Business Journal reported.
Straub’s lawyer has stated that his client is interested in working with former tenants instead of new ones, according to the AP.
“I don’t think he’s looking for a complete new set of tenants,” the attorney told the news source. “He’s looking for reasonable lease adjustments.”
Garces group
The Garces Group – a former tenant which previously had four restaurants in Revel – is in discussion with Straub, chief development officer Rob Keddie told Philadelphia Business Journal. Last September, he stated that once Revel reopened, he wanted his company to do business in the new property.
“We still see Atlantic City as an incredibly important market for us, so we continue to be in discussion with Polo North regarding our operations there,” Keddie told the media outlet.
Further challenges
Even though Straub’s plans have moved forward one step as a result of him receiving a court ruling that he has the right to cancel existing leases, the Florida developer is facing other challenges in his plans for the property.
The Revel hotel and casino has been without power since April 9, after ACR Energy Partners – the main power supplier for the property – was unable to come to an agreement with the new owner, according to the AP.
Revel also lacks water, and the fire department emphasized in February that any efforts to fight fires at the facility will be very hard to pull off as long as this situation is not remedied, the media outlet reported.
Wells Fargo, which has helped provide financing during the bankruptcy, has offered to provide $300,000 to grant Revel power for two weeks, but lawyers for both ACR and Straub indicated that the two sides have not made any decision on the matter, according to the news source. Amid the current situation, Atlantic City has been fining Straub $5,000 a day because the lack of power breaches fire safety codes.
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
