Revel Casino Drama Far From Over, As New Bidder Emerges At Last MinuteCalifornia Developers Want To Outbid Glenn Straub |
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The Revel deal that supposedly was the deal to end the string of aborted deals reportedly could be yet another case of an agreement unraveling at more or less the last minute.
According to Philly.com, a L.A.-based group has made an offer to purchase Revel out from underneath Florida real estate developer Glenn Straub, who had reached an agreement to buy the casino for $82 million. A judge was supposed to approve that deal on Wednesday, but that reportedly is now no sure thing.
Revel, which cost $2.4 billion to build, closed last year and has been going through bankruptcy. Revel said that Straub has already paid the $82 million for the property.
Why could the casino go to the California developers?
[Leo] Pustilnikov said his and [Isek] Shomof’s $80 million offer is effectively $8 million more than Straub’s current price, because that $82 million includes a $10 million deposit forfeited when Straub failed to complete the purchase by a Feb. 9 deadline. That makes Straub’s current deal worth $72 million in reality, Pustilnikov said.
Straub reportedly faces opposition because tenants that were in Revel when it closed want to continue doing business in the property whenever it is rebooted. Also, an energy company that provided utilities to the casino is unhappy because of outstanding debt that apparently remains in limbo under Straub’s business plans.
The aforementioned California businessmen say they’d keep the tenants in there.
Straub indicated he’s not sure about gambling for the property’s future.
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