Glenn Straub agrees to extend closing date for Revel Casino Hotel

Attorney Stuart Moskovitz said Straub is willing to wait until outstanding issues in the case are resolved, including appeals from former business tenants and a utility supplier, or until the end of February. The deadline for Straub to complete his purchase was supposed to be Monday, and he had threatened to walk away from the deal if it was delayed. But a federal judge has delayed the sale at least until after a 3 p.m. hearing Monday on the appeals. Straub’s deadline extension makes it more likely the sale will happen.

Monday’s hearing has the potential to resolve the most contentious issues standing in the way of Revel’s sale; it could clear the way for the sale to close relatively soon. “There are multiple motions pending in multiple courts, some of which will not be heard on Monday,” Moskovitz said. “No predictions until we see how these motions are determined.”

The so-called “amenity tenants” argue they were operating successfully, and should have the right to have their leases honored by a new buyer of Revel. IDEA Boardwalk, a company consisting of tenants including HQ and several celebrity restaurants at the former casino, says its $16 million investment will be wiped out if Straub is allowed the buy the casino free and clear of its leases.
And ACR Energy is threatening to cut off electricity, heat, air conditioning and water to the building if its debts are not paid. They intended to pull the plug last Thursday, but agreed to keep the power flowing at least until Wednesday when a bankruptcy court judge will consider the issue.

Revel and ACR say they are working toward a resolution that could eliminate the need for Wednesday’s hearing.

Straub is the lone remaining bidder from a bankruptcy court auction of Revel last fall. He was the runner-up, but became the chosen bidder after the winner, Canadian firm Brookfield Asset Management, scrapped its US$ 110 million deal to buy the casino, citing a dispute over the power plant debt.

In obtaining preliminary approval last week to own a casino in New Jersey, the Hard Rock chain said it has been interested in Revel and has had talks with Straub about some level of involvement in it. But CEO James Allen would not go into detail about what was discussed with Straub.