Revel, Straub talk after judge delays decision

Florida investor Glenn Straub wants a cheaper deal on the bankrupt Revel Casino Hotel in Atlantic City and is pushing negotiations as far as he can.

"You're going to see a lot of action in the next couple of days," Straub said after a hearing Tuesday in Camden on Revel's request to terminate its $95.4 million agreement with Straub, who decided not to complete the purchase by the Feb. 9 deadline.

U.S. Bankruptcy Judge Gloria M. Burns said she would rule Thursday at 3:30 p.m. during a teleconference with attorneys for Revel; the Straub company that would buy the casino-hotel, Polo North Country Club Inc.; and other groups.

In response to a question from Burns about whether talks between Revel and Straub occurred in the last week, John K. Cunningham, Revel's lead bankruptcy attorney, said negotiations had continued.

"We have been trying to save this deal," but the recent offers from Straub are too far below the $95.4 million price in the current agreement, Cunningham told the judge.

Straub aimed to buy the $2.4 billion property without having to deal with Revel's current tenants, including restaurants, nightclubs, and retailers, who have unexpired leases and want to continue operating in the building if it reopens.

Appeals Court and District Court rulings have prevented him from buying it on those terms while the tenants appeal Burns' sale order, which allowed him to do so.

After the hearing Tuesday, Straub, his attorney, and several Revel representatives talked for about 20 minutes in a small conference room outside the courtroom, but came to no agreement.

The same thing happened after a hearing last week, when Burns denied Straub's motion to extend the deadline in his purchase agreement. This week there were fewer loud voices to be heard from the room.

Among those talking with Straub on both occasions was Shaun Martin, Revel's chief restructuring officer and a principal at Winter Harbor L.L.C., an advisory firm that billed Revel $1.5 million for its services since the June bankruptcy filing.

In testimony, Martin said the price Straub offered was too low for Revel's lender, Wells Fargo, though he did not say what Straub's latest offer was.

As to why Revel would walk away from Straub now, when the company could be forced in several months to convert its case from a sale under a Chapter 11 of the bankruptcy code to a sale under Chapter 7, which would likely bring in far less money, Martin said: "We do not believe that we will reach a deal."

If Burns terminates Revel's deal with Straub, there will be a fight over Straub's $10 million deposit.

Straub wants the $10 million to be kept in escrow if Burns rules against him Thursday.

"We are going to appeal if you rule against us," Straub attorney Stuart J. Moskovitz told the judge.