A court-appointed examiner’s report, ironically published in the Ides of March, discovered evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face billions of dollars in potential damages in relation to its bankruptcy restructuring, according to the tips of the court-ordered examiners’ report, published Tuesday.
The company is seeking chapter 11 bankruptcy for its primary operating product, CEOC, in an attempt to reorganize $18 billion of its debt, but is facing opposition from its junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers which spent 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 as well as other subsidiaries for the benefit of its controlling private equity backers, while placing them out of the reach associated with junior creditors.
This form of asset-stripping left CEOC with nothing but assets that are distressed a failure 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 ultimately it all boiled down seriously to one word.
‘ The answer that is simple this quest