As The Wall Street Journal reports, court papers filed on Wednesday show that Glenn Straub, a Florida real-estate developer, is offering $90 million in cash to acquire the casino and resort following its second bankruptcy filing in as many years.
Straub told The Journal that the all-cash bid gives the hotel the opportunity it needs to turn itself around. "That's what they need right now—a new direction," he said. "Give us our six months, and we'll actually physically be open. In two years, we'll be 100-percent open."
Any bid would be subject to the approval of the bankruptcy court. However, it's been reported that Revel's owners agreed to the bid, which is far below the $2.4 billion the property was once valued at.
According to The Associated Press, Revel is also asking the court to approve a $3-million breakup fee for Straub, which he would be paid if the deal doesn't go through.
Straub's wasn't the only bid, however. Alex Meruelo of California-based Meruelo Group, which last year also made a failed attempt to buy the Trump Plaza casino in Atlantic City, also has made an offer, though the dollar amount was not disclosed.
Carl Icahn, the activist investor, also reportedly made a bid.
If a deal for Straub's bid does go through, it's unclear whether the property will still move forward as a casino hotel. This is what Straub told USA Today.
While he wasn't forthcoming, Straub said in an interview with the media outlet that, "When everybody thinks of Atlantic City, they think of casinos." He went on to say, and as written by USA Today, "he would be bothered by the idea of his family profiting from an enterprise built around gambling."
The Revel closed September 2 after filing for bankruptcy protection for the second time. Atlantic City has been unable to do what counterpart Las Vegas has: turn the city into an attraction not only for gambling but for entertainment, nightlife and food and beverage. Furthermore, it's been hampered by competition from nearby states where there is gambling and casino resorts, including Pennsylvania, Massachusetts and Maryland.
Revel, which reportedly was hemorrhaging as much as $1 million per week before it closed, is not the only property in Atlantic City to face hardship. On Tuesday, Trump Entertainment Resorts placed Trump Plaza and Trump Taj Mahal into bankruptcy.