Florida-based real-estate developer Glenn Straub promised legal action if Brookfield Property Partners’ $110 million bid for Revel Casino Hotel is accepted.
Straub filed court papers on Sunday with the U.S. Bankruptcy Court in Camden, accusing Revel management of failing to disclose information about competing bids and making “on-the-fly” alterations to procedures and deadlines to ensure that Straub’s investment company, Polo North Country Club Inc., didn’t win the auction of the Atlantic City hotel and casino.
“This entire auction proceeding is highly suspect, and, given the appearance of impropriety and lack of open communication, tainted at best,” Straub’s lawyers wrote in their objection.
Straub’s group is requesting the court to allow a “new, open and transparent” auction that will be directed by an independent trustee with no biases to prospective bidders.
Straub’s group isn’t the only one objecting to Brookfield’s $110 million bid for Revel. ACR Energy Partners LLC, which operates the power plant that provides energy to Revel, joined Straub in objecting to Brookfield deal. According to its court papers, the company could be forced to “file for bankruptcy” in the event it loses its supplier contract with the casino.
U.S. Bankruptcy Court Judge Gloria Burns will preside over a sale hearing this week to hear these objections.
Donald Trump wins lawsuit against Trump Entertainment Resorts
Donald Trump is getting his demand to have his name removed off the Trump Plaza Casino and the Trump Taj Mahal after winning a lawsuit against Trump Entertainment Resorts, which runs the two casinos bearing Trump’s name.
Trump Entertainment Resorts Spokesman Brian Cahill told CNNMoney that the company was in the process of “removing the letters from the building” and that the whole undertaking should take a few weeks to complete.
Trump’s lawsuit was filed in state Superior Court in Atlantic City in August, demanding that his name be taken off the two casinos because Trump Entertainment “failed to operate and manage the casino properties in accordance with the high standards of quality and luxury required under Trump Entertainment Resort’s license agreement with Trump.”
“We have a very high standard and they didn’t meet it,” Trump told CNNMoney.
The Trump Plaza Casino has already gone out of business, closing its doors in September and becoming the fourth Atlantic City casino to shut down this year. Meanwhile, the Trump Taj Mahal is expected to follow suit on November 13 if billionaire Carl Icahn’s proposed rescue of the casino doesn’t pull through.
