ï»¿Caesars Faces Billions in Claims, Investigation Finds Proof of Private Equity Asset-Stripping
A examiner that is court-appointed report, ironically published in the Ides of March, found evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face vast amounts of dollars in potential damages in relation to its bankruptcy restructuring, in line with the suggestions of the examiners that are court-ordered report, posted Tuesday.
The business is golden goddes ii slot looking for chapter 11 bankruptcy because of its primary operating product, CEOC, in an attempt to reorganize $18 billion of its debt, it is facing opposition from the junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of attorneys which invested an investigating the casino giant’s corporate dealings year.
Their aim: to determine whether, as alleged, the company fraudulently transferred many of CEOC’s prime assets to Caesars Entertainment along with other subsidiaries for the advantage of its controlling equity that is private, while placing them out of the reach of this junior creditors.
This form of asset-stripping left CEOC with nothing but distressed assets and an inability to cover its debts, argues a group of creditors led by the Appaloosa Management hedge fund, that is suing Caesars.
CEOC Possibly Insolvent as Early as 2008
The investigation team poured over 80 million pages of papers to produce its 80-page report. But eventually it all boiled down seriously to one word.
‘ The answer that […]