By Daniel Kelley
Thu Feb 19, 2015 6:35pm EST
Feb 19 (Reuters) - A U.S. bankruptcy judge on Thursday terminated the $95.4 million sale of Atlantic City's Revel Hotel and Casino to Florida developer Glenn Straub, clearing a path for a third attempt to sell the troubled property.
Judge Gloria M. Burns in Camden, New Jersey, also ordered that Straub's $10 million deposit be released to Revel's attorneys. They argued that they should be allowed to keep it under the terms of the deal after Straub missed a Feb. 9 deadline to close on the transaction.
But while the ruling allows Revel to accept new bids, it is unclear whether anyone will step up to make a third offer on the distressed New Jersey gambling hub's newest casino, now in its second bankruptcy since it opened in 2012 with a $2.4 billion price tag.
The termination marks the second time a sale of the Revel has failed. Brookfield Asset Management, which won with its $110 million bid late last year, backed away from the deal in November after failing to reach an agreement with the owners of Revel's on-site power plant.
At a hearing earlier in the week, Shaun Martin, Revel's Chief Restructuring Officer, said many investors who have already done due diligence on the property have continued to express interest, but there have been no serious offers.
It's unclear exactly what next awaits Revel, but it is running out of money. If the case lasts another three to five months without a sale, Revel will likely be liquidated, Martin said. It remains unclear what, precisely, that would mean for the property.
Straub's lawyer, Stuart Moskovitz said he would appeal the judge's ruling over the deposit.
Straub had stalled finalizing the purchase, citing litigation involving several businesses that operated inside the casino, including restaurants, a night club and the power plant.
He asked for an extension after those businesses won a series of court victories. The businesses argued that they would be wiped out if the sale proceeded without considering their interests.
Revel's lawyer, John Cunningham said he would ask permission at a later hearing to spend Straub's $10 million deposit. Cunningham said Revel wanted to spend the money "in lieu of further (debtor in possession) financing that we do not have a commitment from Wells Fargo to spend."
Wells Fargo & Co has loaned the resort money to survive during bankruptcy. (Reporting by Daniel Kelley in Trenton, New Jersey; Editing by Christian Plumb)
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