Bloomberg Revel AC Inc., the bankrupt New Jersey casino operator, reached a deal to sell its shuttered Atlantic City property to Glenn Straub’s Polo North Country Club Inc. for $90 million, absent a better offer.
Revel, which opened in April 2012 at a cost of $2.4 billion, has filed for bankruptcy twice. After the second filing, in June, it sought a buyer willing to keep the resort open. When no acceptable offers surfaced, it closed this month, becoming the third Atlantic City casino to do so this year.
The city’s gambling business has been hurt by competition in Pennsylvania, Maryland and New York. Trump Entertainment Resorts Inc., which filed for bankruptcy protection Sept. 9, plans to close one of its casinos this month and said the other one may shut down in November.
Polo North is the so-called stalking horse, or lead bidder, whose offer for the property is subject to higher bids at a Sept. 24 auction, according to filings yesterday in U.S. Bankruptcy Court in Camden, New Jersey. Other potential buyers have until Sept. 23 to make competing offers.
Straub owns the Palm Beach Polo and Country Club, a 2,200-acre resort in Wellington, Florida, according to his attorney, Luis Salazar. Last year, he unsuccessfully participated in a bankruptcy auction of the Versace mansion in Miami Beach.
The Polo deal benefits Revel and its creditors by setting a floor for bids and “increasing the likelihood that the best possible purchase price for the assets will be received,” Revel said in court documents.
Polo has made a $10 million deposit, according to court documents. Under proposed sale procedures, Polo would get a $3 million breakup fee if it’s outbid at auction.
Atlantic City’s first new casino since 2003, Revel shut down for five days a few months after it opened because of Hurricane Sandy. It filed a first bankruptcy in March 2013.
The case is In re Revel AC Inc., 14-bk-22654, U.S. Bankruptcy Court, District of New Jersey (Camden).