New bidders try to squeeze into Revel casino sale process

Glenn Straub's Polo North Country Club has an US$ 82 million deal to buy the casino from Revel AC, which is being considered by a federal bankruptcy court judge Thursday. But at least two other would-be buyers want to be considered: Los Angeles developer Izek Shomof, and New York private equity investor Jeffrey Keating.

Ramy Ibrahim, senior vice president of Revel's investment bankers Moelis & Co., said 19 parties had contacted the firm since last week, including seven new would-be bidders who had not previously been heard from. Of the seven, Ibrahim said, "none of them were able to validate who they were, who they were representing. In our opinion, at the end of the day, they were not real buyers."

Stuart Brown, an attorney for Revel's power plant said he has spoken with five other potential buyers "that Moelis doesn't know about."

"We still have no definitive agreement or any deposit from any other bidder other than Polo North," Revel attorney John Cunningham said. "That's just the facts. The only real bidder with real money ready to go is Polo North." Shomof did not submit a bit as of Thursday, and did not respond to follow-up requests from Moelis, Ibrahim said.

Keating told The Associated Press he is putting together a private equity group to buy Revel, reopen it as a casino and add amenities including amusement rides and a Ferris wheel. "We want to hire back 6,000 people who lost their jobs, honor the leases of the businesses who worked there, and keep the power plant open," he told the AP. "We will show proof of funds and proof of capacity. We are in this for the long haul."

Shomof and Keating had said they would honor the leases of former business tenants at Revel, including restaurant and nightclubs. Opposition from these tenants has been a major source of delay in approving a sale.

Still to be decided is whether the judge has jurisdiction to approve the sale to Straub, and it involves an appeal of Judge Gloria Burns' January ruling approving the sale to Straub. The tenants sought to preserve their legal rights in a sale, and filed an appeal, which resulted in a judge issuing a partial stay of the sale.

The appellate ruling put on hold the question of whether the tenants' leases can be ignored by a new purchaser, but is allowed the sale to move forward in all other respects. Burns said Thursday she is not yet convinced she has jurisdiction to approve the sale to Straub, given that its terms have changed materially, with the sale price falling from US$ 95.4 million under a previous contract to US$ 82 million under the current one. Straub said he is the only one to put money on the table.

"I keep waiting for the elevator doors to open and somebody to walk out carrying bags of money," Straub told The AP before the hearing began. "We keep hearing about people with money wanting to make bids. I haven't seen them yet."