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.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
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.
Will Revel Ruling Strip Property Tenant Rights or Not?
Author: Joel R. Glucksman
The new owner of Atlantic City’s Revel Hotel and Casino has been granted control of property tenant rights, a federal judge ruled on April 20.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
