Bankruptcy Case Might Cost Caesars $5.1 Billion in Damages
Caesars Entertainment Corp. (CEC) may address $5.1 billion in damages related to a number of corporate discounts that led to its operating that is main unit for Chapter 11 bankruptcy security. Which was exactly what an independent examiner said on Tuesday upon posting the outcome from a year-long research for the $18-billion financial obligation instance involving one of the world’s gambling operators that are biggest.
Former Watergate investigator Richard Davis and a group of attorneys were appointed year that is last examine a lot more than 8 million pages of documents and interview 92 people with regards to Caesars Entertainment Operating business’s (CEOC) bankruptcy filing.
Adhering to a more than a year-long probe, Mr. Davis and their peers discovered that Caesars, that will be owned by Apollo worldwide Management online-casinos-vip.com and TPG Capital, discarded prime properties, thus leaving the company unable to pay for a debt that is huge.
The investigation ended up being initiated year that is last after a band of junior creditors, led by Appaloosa Management, claimed that CEOC, known to be Caesars’ main running product, was stripped clean of its most useful properties and this had benefited the gambling company and its own owners.
Mr. Davis said in his 80-page summary for the case that the major operator may face between $3.6 billion and $5.1 billion in damages for claims for the fraudulent disposal of assets and breach of fiduciary duties against officials of both CEOC and CEC. Continue reading