The sale of the $2.4 billion Revel Casino Hotel at bankruptcy auction has been delayed by one week. The postponement is a bad sign for the sale, because it signifies the hotel's investment bankers failed to establish an adequate starting bid. Bids were made, but offers that came in by the bidding deadline were undoubtedly hard to compare due to differences in how the offers are constructed.

Ballard Spahr bankruptcy partner Dean C. Waldt said, "If the bids are different, then they have to set up bidding rules on common terms. They have to establish where 'Go' is," the starting point on the Monopoly game board, said Mr. Waldt, referencing an Atlantic City image. The starting point would be the level from which bids begin, in increments of $1 million.

Revel is expected to sell for considerably less than the $450 million it owes in secured debt.


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Bankruptcy, Reorganization and Capital Recovery