By David Madden
ATLANTIC CITY, N.J. (CBS) — The judge overseeing the Revel hotel bankruptcy in Atlantic City has decided that she can’t decide on the $82-million offer from a Florida developer.
So, what happens next is very much up in the air.
Federal bankruptcy judge Gloria Burns, in a conference call today with all the parties involved, announced she does not believe she has jurisdiction to decide on Glenn Straub’s offer, given all the appeals filed with higher courts and limited stays placed upon her.
Roger Gros, with the magazine Global Gaming Business, says he isn’t surprised.
“The judge has realized that she is just stepping into an abyss here. If she had approved it, this would have been another lawsuit from the tenants,” he tells KYW Newsradio.
What this does to the Revel’s future is unclear. Wells Fargo Bank has indicated it would no longer fund Revel’s day-to-day needs if the Straub deal didn’t go through, perhaps leading to Chapter 7 liquidation.
There are at least two (and as many as 19) other entities that could enter the fray at some point.