Caesars Lawsuits Halted
As Caesars Entertainment Operating Co., a subsidiary of Caesars Entertainment Corp., scrambles to secure $4 billion from its parent company to sort out its bankruptcy reorganization, a judge ruled June 15 that two lawsuits totaling more than $10 billion will be tabled until August.
Photo: John Locher/AP, file
In Las Vegas.
The suits, filed by bondholders in Delaware and New York, allege that Caesars and principal owners Apollo Global Management and TPG Capital unfairly reallocated resources to create “good” and “bad” companies after being bought out in 2008. A report by bankruptcy examiner Richard Davis determined that assets were shuffled “among newly created entities” just before the biggest unit declared bankruptcy, which left creditors with less than they were owed, though this report was not legally binding and did not prove any criminal activity.
Judge A. Benjamin Goldgar paused the lawsuits until Aug. 29 and said that further suspension of the case would be unlikely. “You’ve got that time, use it” he said. Ceasars stock rose after the ruling. Caesars maintains that it has acted in good faith and worked for the benefit of itself and its creditors. If the casino giant loses the Delaware and New York suits the entire company will likely be forced to declare bankruptcy.
FREE
Daily Pulse
Subscribe
Daily Pulse
Subscribe