Big showdown in court could decide Revel's fate

A FEDERAL JUDGE has set up a court showdown over the future of Atlantic City's former Revel casino hotel.

In a rare Sunday ruling, Judge Jerome Simandle ordered that claims from business tenants at the casino, as well as its sole supplier of utility services, must be heard before the sale can go through. The $95.4 million sale to Florida developer Glenn Straub is due to close today, but the latest court order has cast that into doubt.

The judge scheduled a hearing for 3 p.m. today on emergency motions from businesses, including ACR Energy Partners and the popular HQ nightclub that had to shut down when Revel closed its doors Sept. 2.

The outcome could well determine whether Revel is sold or whether Straub walks away from the deal, as he has threatened to do, if he is saddled with leases for businesses he does not want.

"Everything's up in the air right now," Straub's lawyer, Stuart Moskovitz, said yesterday. "There's these court rulings hanging over everyone's heads."

He would not predict what Straub might do if today's ruling goes against him, requiring him to honor the leases of the former tenants, and to pay unpaid bills and fees stemming from the power plant.

Today's hearing has the potential to resolve the most contentious issues standing in the way of Revel's sale. It could clear the way for the sale to close soon.

But it also could scuttle the deal if Straub decides he no longer wants to wait. He has in the past threatened to scrap his purchase if the sale is delayed beyond today's scheduled closing date.

"There are multiple motions pending in multiple courts, some of which will not be heard on Monday," Moskovitz said. "No predictions until we see how these motions are determined."