A court-appointed examiner’s report, ironically published on the Ides of March, found evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face billions of dollars in potential damages in terms of its bankruptcy restructuring, according to the guidelines of a examiners that are court-ordered report, posted Tuesday.
The business is seeking chapter 11 bankruptcy for its main operating product, CEOC, so that they can reorganize $18 billion of its debt, it is facing opposition from the junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers 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 benefit of its controlling private equity backers, while placing them away from the reach associated with the junior creditors.
This form of asset-stripping left CEOC with nothing but distressed assets and an incapacity to pay for its debts, argues a group of creditors led by the Appaloosa Management hedge fund, that will be suing Caesars.
CEOC Possibly Insolvent as Early as 2008
The investigation team poured over 80 million pages of papers to create its 80-page report. But finally it all boiled down to one word.
‘ The simple answer to this question is ‘ Continue reading “Caesars Faces Billions in Claims, Investigation Finds Proof of Private Equity Asset-Stripping”