A bankruptcy judge will allow Atlantic City, N.J., to collect as much as $30 million in unpaid property taxes owed by the shuttered Revel Casino Hotel so long as the city agrees not to impose costly penalties, Dow Jones Daily Bankruptcy Review reported today. In response to a request from the city, Judge Gloria Burns yesterday agreed to lift the Bankruptcy Code's shield protecting Revel from litigation and creditor collections. Atlantic City in September had asked Judge Burns for permission to sell, at a Dec. 11 auction, the rights to collect the taxes. Though the city won't be allowed to tack on penalties, the sale could still double the interest rate on the unpaid taxes to 18 percent.
