Revel Casino Powered, But Not Paid

Revel Casino Powered, But Not Paid Straub purchased the Revel Casino property valued at $2.4 billion for $82 million from bankruptcy court in April and since that time owes a substantial amount for electricity on the property.

ACR Energy Partners cut off service two days after Straub took ownership. But Department of Community Affairs ordered ACR Energy Partners to power on enough electricity to keep fire safety systems on. In court an interim arrangement was made where ACR would provide a limited flow of power and Straub would keep a bank account funded to pay for it.

Bank of New York Mellon says Atlantic City Revel Casino owner, Glenn Straub, owes $1 million in unpaid electrical bills in the vacated building.

Additionally the bank is also trying to obtain a $2 million line of credit from Straub’s Polo North Country Club in case Polo should fall behind on payments in the future.

Bank lawyer Guy Amoresano wrote in a statement Straub has stopped making payments to the power plant that is in foreclosure.

"Any other vendor faced with this substantial misappropriation would cut off supply," he wrote.

"ACR is not free to do so because it currently supplies the electricity under involuntary government compulsion."

Not until ACR can show how much electricity Polo North used by itself, meaning not in combination with ACR's use of power by equipment it owns inside Revel Casino will Straub pay according to his lawyer Stuart Moskovitz.

"We are only supposed to be paying for electricity we use," he said Friday. "It appears at this point, and it is difficult to get answers from ACR, that they are using electricity to power their (central utility plant) and to power transformers we are not using, and trying to bill us for it."

What are the plans for Revel? According to Straub he has a few ideas and whether or not a Casino will be part of the plan is still up in the air. It could become a completely different facility moving away from a Casino with plans which could include a medical spa, indoor water park, equestrian facility or a "genius academy".

  • I think most people thought it was going to continue to be a casino. Like me, I thought most were looking forward to when the renovations were completed and a grand opening was announced. I also think that there are a lot of people out of work in the gambling industry there, looking to this place as a potential place of employment. All those other types of businesses could possibly work out, but it will be a big disappointment to those looking for work in what they thought was going to be a new casino.
  • I don't blame him , until they can prove, show and clarify the electricity that was used and owed properly I wouldn't pay it yet either . Its not a matter of money the guys has a ton , its a matter of principle . This property and story has been around now and ongoing for months . He might have gotten it as a steal of the century but it has bad juju written all over . It may end up a bigger head ache in the long run , who knows. I wish him best of luck with his ventures and whatever he decides to do with the property.
  • I read an article about Straub on the Bloomberg Business website some months back. Apparently Straub is a tough guy, friend of Donald Trump and no stranger to conflict and litigation in his business life. He believe in prolonging the human life span with expensive modern medical treatments, which he would like to offer at his new facility when he gets through renovating the Revel. Here is the url of the article it is fascinating:
  • Wow, what a deal. For less than $100 million this Straub guy buys a property worth over 2 billion. That's less than a nickel on the dollar he picked up the property for. And now he does not want to pay a few pennies for electricity? Come, on.

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