Caesars Entertainment Bankruptcy Endgame Will Be Revealed Soon

by San Antonio Attorney

An $18 billion reorganization proposal was submitted by the financially-troubled Caesar’s Entertainment to a bankruptcy court.  The fate of the bankrupt company will depend on the final judgment of the court, as this will adversely affect the buyout among firms and creditors rendering financial support of acquisitions.

The dispute, which took almost a year, has reached a neutral decision of mediating two parties.  One side is the holding company of the Caesars Entertainment, which is entirely held by Apollo Global and TPG Capital.  The second side consists of hedge funds such as Appaloosa Management and Oaktree Capital.

As claimed by the hedge funds, Caesar’s Entertainment owners have decided to go on the ‘brazen corporate looting’ process.  This was done through stripping of assets and financial deals after purchasing the group for an amount of $31 billion last 2008.

For instance, a deal involving an asset of Caesars Interactive was sold for an amount less than $100 million last 2009.  It was sold to entities that were partially controlled by private equity groups.  Last month, Playtika, a branch of Caesars Interactive, an online gaming business branch, was bought by the Chinese for $4.4 billion.

Last July, Benjamin Goldgar, a federal judge of Chicago, overlooked the dispute in the court hearing, but gave warning that the remaining assets, on one uncertain side, had certain miscalculations through playing hardball.

The remaining operating unit of Caesars, where majority of the company’s debt worth $18 billion, filed for bankruptcy last January 2015, and the holding company of Caesars has been halting lawsuits, combating with the charge of misconduct.

Last June, Goldgar granted a ‘stay order’ that halted the litigation for approximately 74 days.  However, this order is scheduled to lose its efficacy by the end of the month.  Another initial trial is set for August 29 in New York.

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