Closed Revel Casino Receives $90 Million BidSouth Florida Developer Makes Official Bid On Bankrupt Property |
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Revel casino, the most expensive casino in the history of Atlantic City, has received a bid of $90 million in cash from Glenn Straub’s Polo North Country Club Inc., Bloomberg reported.
Straub is a developer from South Florida.
If acquired by Straub, Revel likely would not re-open its beleaguered casino gambling floor.
Revel closed earlier this month after a rough two years of being open. Its first bankruptcy filing wiped away $1.2 billion of its $1.5 billion in debt. As a result, lenders were issued an 82-percent ownership stake in the property.
The casino, which cost $2.4 billion to build, was the third casino to close this year in the seaside resort town. Another is expected to close later this month, while a fifth could close in November. Trump Entertainment is the owner of the Trump Plaza, which will close this month, and the Trump Taj Mahal, which could be gone by Thanksgiving. Trump has filed for bankruptcy as well.
Atlantic City began the year with 12 casinos.
The $90 million bid on Revel would be the winner if a better offer isn’t received.
According to Bloomberg:
Polo North is the so-called stalking horse, or lead bidder, whose offer for the property is subject to higher bids at a Sept. 24 auction, according to filings yesterday in U.S. Bankruptcy Court in Camden, New Jersey. Other potential buyers have until Sept. 23 to make competing offers. […]The Polo deal benefits Revel and its creditors by setting a floor for bids and “increasing the likelihood that the best possible purchase price for the assets will be received,” Revel said in court documents. Polo has made a $10 million deposit, according to court documents. Under proposed sale procedures, Polo would get a $3 million breakup fee if it’s outbid at auction.
According to Philly.com, Straub’s $90 million offer works out to just 20 cents on the dollar, based on the most recent debt calculation for Revel. The $90 million also represents just four percent of the original price tag for Revel, which needed state help to open.
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