The backup bidder for Atlantic City's Revel now has the right to acquire the shuttered hotel and is asking the bankruptcy judge for a discount. Glenn Straub’s Polo North Country Club wants to pay around $87 million for the property, not the original $95.4 million, Bloomberg reports. The new asking price comes after alleged improprieties in the auction process.
As Bloomberg reports, Revel decided to proceed with a sale to Polo North after Brookfield Property Partners terminated a contract to buy the property for $110 million. When the bankruptcy court in Camden, N.J., approved the sale to Brookfield, the judge tapped Straub as the backup bidder to buy the project at his last offer of $94.5 million if the higher sale fell through, which it did.
A hearing on the sale is scheduled for January 5, when Straub wants the court to cut the purchase price.
Straub said his original cash bid of $90 million should be the starting point for calculating his purchase price.Then he wants a $3-million break-up fee applied to the purchase price because the estate is receiving a “significant” financial benefit by retaining Brookfield’s $11 million deposit.
Separately, Revel and Atlantic City reached a settlement where the casino will pay the city $26 million to resolve a dispute over 2014 real estate taxes. In return for a $5 million reduction in real estate taxes that otherwise would be owing for this year, the casino will pay the modified tax bill.
Revel, which opened in April 2012, filed its second petition for Chapter 11 protection in June.