Tenants fighting to reopen at the Revel complex won a crucial ruling last week from a federal judge who ordered Revel's new owner to give them access to leased space so they can try to resume operations at the beachfront property.
Revel owner Polo North Country Club Inc. must allow the tenants, including once-teeming nightclub HQ, access to the property “to preserve physical assets, as well as to investigate, plan, and take the necessary steps to restart operations,” U.S. Bankruptcy Judge Michael Kaplan ruled.
The tenants have been fighting for control of spaces they leased at the 6.2. million square foot property, which closed in September.
Polo North, led by developer Glenn Straub, bought Revel out of bankruptcy and rejected leases the tenants held with the resort’s prior owner.
But the tenants maintain basic rights of access to the leased space under bankruptcy law. For IDEA Boardwalk LLC, which owns HQ, those so-called “possessory rights” include “access to utilities for operation, including electricity, hot and cold water, plumbing, gas, internet, cable and telephone service,” Kaplan ruled.
In a statement IDEA attorney Barry Roy said the company is "extremely pleased with the decision."
"IDEA is now going to take the necessary steps to comply with the various city and state agencies to allow for the reopening of HQ."
Meanwhile, ACR Energy Partners, the energy company supplying limited electricity to the Revel complex, is on the verge of going belly up, an attorney for The Bank of New York Mellon told another federal judge.
The bank, which represents bondholders holding about $119 in municipal bonds used by ACR to build a power plant for Revel, wants the judge’s permission to intervene in ACR’s ongoing court battle with Polo North.
ACR has defaulted on the bonds, which are secured by the plant, the bank said in a court filing last week. The bank’s need to participate directly in the case “to protect its collateral is increasingly acute,” it said.