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March 13, 2015

Judge declines to approve Revel Casino's proposed sale

A U.S. Bankruptcy Court judge on Friday declined to approve the proposed sale of the shuttered Revel Casino Hotel in Atlantic City, New Jersey, for $82 million because she said she lacked jurisdiction.

Judge Gloria Burns in Camden, New Jersey, said she could not approve the sale because it would interfere with an appeal being pursued by casino tenants who argue that the sale would deny them their property rights.

The casino's advisers were seeking approval of an agreement to sell the oceanfront complex to Florida developer Glenn Straub, who agreed to buy it "free and clear" of lease agreements with tenants such as restaurants and nightclubs.

The hard-luck Revel had already failed to close two previous sale agreements, one with an affiliate of Brookfield Asset Management, for $110 million, and a $95 million agreement with Straub.

After the price was lowered, Straub agreed to the latest deal.