Straub in new, cheaper deal for Revel

Florida developer Glenn Straub's deal to buy Atlantic City's bankrupt Revel Casino Hotel is back on, this time for $82 million and with a definite closing date of March 31, Revel's attorneys and Straub said Tuesday.

The new price is 14 percent less than Straub's previous offer of $95.4 million and comes a week after U.S. Bankruptcy Judge Gloria M. Burns allowed Revel to toss the old agreement with Straub, who jump-started Revel's sale process when he offered $90 million in September.

The revised deal for the $2.4 billion property, which needs bankruptcy court approval, required Straub to put his entire payment in escrow to make it more likely the deal will be completed.

"For the first time in the Chapter 11 cases, the debtors now have a definitive purchase agreement that provides for a fully funded purchase price, specific performance, and certainty of closing," Revel said in its motion asking the court to approve the deal.

In a statement, Straub revealed some details about his plans for Revel, which "include major construction of a $50 million-plus expansion of the exterior area of the building and a $50 million- plus relocation of items such as a more accessible hotel lobby, a large medical/health spa and facility, etc."

Straub said he is looking for state and local government assistance and has a three-year plan to fully develop the property.

He refused to complete his previous agreement by its Feb. 9 deadline because, he said, it was not clear what he would have been buying, given claims on the property by Revel tenants with unexpired leases.

Those tenants, including the popular HQ nightclubs, have been fighting to stay in the property for the duration of their leases. They appealed a bankruptcy sale order that stripped them of their rights to stay and won a U.S. District Court order blocking that portion of Straub's old sale order.

It appears that whatever happens with those appeals, Straub will be compelled to close on the deal or risk losing his $82 million.

Straub said he "is currently negotiating with several of the tenants with an eye towards being open and operational" for the coming season.

The new deal does give Straub one out.

If ACR Energy Partners L.L.C., which owns Revel's central utility plant, turns off the power before the closing, which would likely severely damage the building, Straub can back out of the deal.

That gives ACR leverage in its negotiations with Revel over the $20 million ACR says it is owed.

Revel has proposed carving $1.35 million from sale proceeds to settle millions of unsecured claims.

215-854-4651 @InqBrubaker