PHILADELPHIA—While the ruling allows the sale of the shuttered casino to proceed, a federal appeals court ruled on Friday in favor of a major tenant of the Revel Casino Hotel in Atlantic City.
The U.S. Third Circuit Court of Appeals in Philadelphia reversed a lower-court ruling that had stripped the tenant of its rights and cleared the sale of the troubled property to Florida real estate developer Glenn Straub for $95.4 million. Straub is scheduled to close on the sale today, according to the Press of Atlantic City.
The appeals court ruling allows the sale to move forward, but does force Straub to deal with the owner of the HQ nightclub that once operated inside the casino hotel, according to Revel attorney Michael Viscount.
“Whether the nightclub operator can remain in possession will have to be decided later if Straub purchases the property,” Viscount stated in an email. IDEA Boardwalk LLC, owner of the HQ nightclub, has argued that its $16-million investment at Revel would be wiped out if Straub takes over the property.
An earlier bankruptcy court ruling had allowed Straub to evict HQ and other tenants so he could close on Revel's purchase free of any existing leases. Straub has reportedly threatened to walk away from the deal if there are any delays. See story in the Press of Atlantic City.
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