Controversy Looms over Sale of Atlantic Club as Losing Bidder Seeks Rehearing

Controversy continues to hound Atlantic Club Hotel Casino even now when it is about to close officially, and its assets about to be taken by court-approved buyers Caesars and Tropicana Resorts. Sobe Holdings LLC, one of the losing bidders to the bankrupt casino’s auction proceedings, announced that they will submit a formal request for a rehearing of their bid.

Actually, a legal representative of the Florida-based company had already raised objections over the presiding judge’s decision during the auction hearing last December 2013. The lawyer argued that Sobe’s offer of $24.49 million was higher than the combined bids of Caesars at $15 million and Tropicana at $8.4 million, totaling $23.4 million. Moreover, the company’s plans for the distressed casino include revitalizing its operations as well as maintaining status as employment provider. Still, U.S. Bankruptcy Judge Gloria M. Burns deemed it fit to overrule the objection, by citing as main reason her concerns over Sobe’s financial capability to make good on the acquisition deal.

Sobe’s legal counsel contended that if such was the basis, then Caesars should have been disqualified from the deal as well. The latter is heavily indebted as it has more than $20 billion in long-term debts to settle. Yet it seems Sobe’s lawyers failed to raise this issue during the two-day auction, since Judge Burns stated that they should have pointed this out beforehand.

Apparently bent on acquiring the Atlantic Club, Sobe Holdings LLC intends to bring the matter to the court of appeals, should the bankruptcy court deny the company’s request for a rehearing.

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