Bidder who lost Revel auction aims to block sale

Poor sport or does he have a point? That's the question being asked today regarding the sale of Revel in Atlantci City, after it was revealed that Florida developer Glenn Straub, who lost out to Toronto-based real estate firm for the property earlier this month, has now filed an appeal contesting the sale, reports say.

Toronto's Brookfield Asset Management won the rights to the resort, which cost more than $2 billion to build, with a winning bid of $110 million. Straub had reportedly made a $90-million bid for Revel back in September.

Straub's attorney filed an appeal in state bankruptcy court on Friday, according to The Press of Atlantic City.

The basis for the appeal is non-disclosure. Straub's attorney, Stuart Moskovitz, told that the auction was done improperly. The developer contends Revel did not disclose information about competing bids, as promised, and accepted Brookfield's bid after a specified deadline.

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"We absolutely are going to challenge it," Moskovitz said. "We believe this entire auction was done improperly, from start to finish."

Earlier this month, Straub's attorney was just as pointed over how the auction went down. The auction was reportedly conducted in secrecy. For example, Revel's lead bankruptcy attorney, John K. Cunningham, did not reveal until the day before the sale that Brookfield, a client of his firm in unrelated matters, was even involved in the auction.

Further, as wrote, "It's possible that Cunningham and his investment banker colleagues received a timely bid from Brookfield that was deficient or not acceptable to the sellers. The bid procedures approved by the bankruptcy court allowed them to work with Brookfield to improve the bid to the point where Brookfield could participate in the auction.

"We're taking it to the courts," Straub told the Press of Atlantic City that Wednesday morning after the sale. "We're not doing anything else."

Revel opened a little more than two years ago with high hopes of turning around Atlantic City's struggling casino market. However, amid disastrous financial results, was forced to shut down September 2. It was one of four casinos in the city to go out of business this year.


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