Bankruptcy Case May Cost Caesars $5.1 Billion in Damages
Caesars Entertainment Corp. (CEC) may address $5.1 billion in damages related to lots of business deals that resulted in its main working unit filing for Chapter 11 bankruptcy security. Which was just what a completely independent examiner said on Tuesday upon publishing the outcomes from a year-long research associated with $18-billion debt case involving one of many earth’s gambling operators that are biggest.
Former Watergate investigator Richard Davis and a group of solicitors were appointed last year to examine more than 8 million pages of documents and interview 92 people in terms of Caesars Entertainment Operating business’s (CEOC) bankruptcy filing.
Adhering to a higher than a year-long probe, Mr. Davis and his peers found out that Caesars, which can be owned by Apollo worldwide Management and TPG Capital, discarded prime properties, thus making the company unable to pay for a huge debt.
The investigation ended up being initiated last year, after a number of junior creditors, led by Appaloosa Management, reported that CEOC, known to be Caesars’ main running device, had been stripped clean of its best properties and this had benefited the gambling company and its owners.
Mr. Davis stated in his 80-page summary for the instance 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 violation of fiduciary duties against officials of both CEOC and CEC. (more…)