Caesars Financial Future In Question

Richard Davis determined that Caesars, Apollo Global Management and TPG Capital shuffled assets “among newly created entities” just before the biggest unit declared bankruptcy, leaving Appaloosa Management and other creditors without adequate compensation, according to the New York Post.

Caesars owners shifted funds while they were in a yearlong battle with creditors who claimed the company’s best assets were kept beyond their reach. Davis reportedly determined the creditors have more than a 50 percent chance of succeeding with their claims.

The examiner’s report is not legally binding nor does it find evidence of criminal activity or common law fraud but could force all of Caesars into bankruptcy, according to the Post.

“We believe the evidence shows that each of the challenged transactions was undertaken to strengthen [Caesars Entertainment] and provide it with the liquidity and resources required to sustain it and give it time to recover from unprecedented market challenges,” Caesars said in a statement. “These transactions provided immense and indisputable benefit to [Caesars] and its creditors, who received billions of dollars in principal and interest payments.”