called a temporary halt to the pending sale of bankrupt Revel
Casino in Atlantic City and scheduled a hearing on Monday on a
motion to block some of the terms of the $94.5 million deal.
<span class=”articleLocation”>Feb 8 (Reuters) – A federal judge in New Jersey on Sunday
U.S. District Court Judge Jerome B. Simandle ordered an
emergency hearing for 3 p.m. in the proposed sale of the
property to Florida developer Glen Straub, who could lose his
$10 million deposit if the deal does not close by Monday’s
Straub is trying to buy the casino without any obligations
to leases held by bars, clubs and restaurants that operated in
the casino’s hotel. Some of those tenants have gone to court to
block the deal unless it protects their property rights.
An appeals court on Friday ruled in favor of one of the
tenants, prompting others to file motions on Saturday to get
similar treatment. Simandle ruled in their favor in setting the
hearing for Monday.
Revel, which cost $2.4 billion to build and opened two years
ago, closed on Sept. 2 after filing for bankruptcy three months
Revel had been conceived as a Las Vegas-style resort that
emphasized high-end dining and eye-catching design. But the
casino failed to catch on in Atlantic City’s fading gambling
industry, which has seen other casinos shut down as competition
emerges from newer properties in nearby states.
Straub’s lawyer has threatened to back out of the deal if it
doesn’t go forward as specified. If the sale falls through, the
casino could face liquidation.
(Reporting by Kevin Murphy in Kansas City; Editing by Eric
Source: Newsjyoti Bankruptcy News