By Daniel Kelley

CAMDEN, N.J. Mon Feb 9, 2015 7:16pm EST

CAMDEN, N.J. (Reuters) - A lawyer representing the buyer of the bankrupt Revel Casino in Atlantic City said his client would miss a midnight Monday deadline to complete the purchase, amid concerns over precisely what his client is buying. 

His statement came in a court hearing over the fate of several businesses operating within the casino – including restaurants, a nightclub and the $160 million power plant that serves the building. Those businesses say they could lose millions if the sale proceeds. 

Florida developer Glen Straub wanted to buy the casino without any obligation to existing leases held by the bars, clubs and restaurants that operated inside the hotel, according to court papers.

But under a stay of the sale issued by U.S. District Judge Jerome Simandle, it remains unclear if those businesses are included in the $95.4 million purchase price from Straub.

“We're not closing by midnight tonight. That I can guarantee," said Stuart Moskovitz, Straub's attorney.

Michael Viscount, representing Revel AC told reporters after the hearing that they would move to terminate the sale to Straub “at 12:01” and keep his $10 million deposit.

“There are no contingencies for this sale going forward,” Viscount said. 

The hearing before Judge Simandle follows a weekend of intense legal wrangling over the fate of the casino. 

The Third U.S. Circuit Court of Appeals on Friday reversed a lower court decision against one of those tenants, IDEA Boardwalk LLC, which had sought to block the sale while it appealed to protect its property rights. Then, the other businesses, including the power plant, filed emergency motions to be treated similarly to IDEA Boardwalk's. 

Simandle on Monday set a March date for a hearing on whether the sale should include the businesses. 

It's unclear if Revel has a backup plan if the deal falls through. Wells Fargo currently provides about $8 million to $12 million per month in financing, a figure that does not include utility payments.

If the deal does not go through, it would mark the second time a sale of the building in bankruptcy has done so. Brookfield Asset Management, which won a $110 million bid in October, backed away from the deal in November 2014 after failing to reach an agreement with the Revel power plant's owners. 

Viscount says there is no plan to convert the case to Chapter 7 liquidation. 

“We need to come up with Plan C really quickly,” Viscount said.

 

(Editing by Barbara Goldberg)