Losing Bidder wants rehearing in New Jersey Casino Case

In the state of New Jersey, there are a few casinos that have been suffering, facing bankruptcy. The Atlantic Club is one such casino. There was recently a bankruptcy auction held for the casino and the Sobe company tried to purchase the casino with a very large bid. However the company was rejected by the courts as they were considered a high risk. The casino was then purchased by a joint venture between Caesars Entertainment and Tropicana Entertainment. Sobe is now seeking a rehearing in the case.

Sobe is sending their attorneys to request a rehearing in the case and if the company is refused, they should file an appeal. The casino was willing to play as much as $1 million more than the two companies who won the bidding but the judge in the case, Gloria Burns, felt as though the group was a risk for the venture.

Both Caesars and Tropicana do not plan on using the building as of now but taking the parts and stripping the club. Every employee will have to seek a new job and Sobe is stating this was even riskier than if they had won the auction. Sobe would like to keep the casino open after they have refurbished the casino and then allow the club to remain open.

The Sobe Holdings LLC owns a resort in Miami, Florida and would most likely rename the Club after the Deauville Beach Resort, the property in Florida. However, with one less casino in the mix of Atlantic City, there is one less competitor, which is a benefit to Caesars. Overall, the Sobe group is not happy with the court’s ruling and plans on taking action to see the casino be placed in their name. It will be interesting to see how this progresses in the coming days  with the action for rehearing.