Creditors claim Caesars Atlantic City could be tossed into bankruptcy if Caesars can transfer their loyalty system.
Caesars Entertainment is spending much of the this past year making a variety of moves designed to reorganize debt and split the parts associated with the company that will work from those that are losing profits.
The company has found ways to keep its high performing or promising assets away from the massive debts plaguing the parent company though entities like Caesars Growth Partners.
That’s apparently exactly what Caesars planned regarding their rewards program, called Caesars Enterprise Services.
But now, hedge fund mogul David Tepper is among a group of bondholders that want to stop that transfer in an attempt to keep the valuable program as a part of the main company.
Already, four associated with the 12 casinos that were in procedure at the start of 2014 have either shut down or intend to do so before the final end of this summer time.
Regulators Consider Transfer
The battle comes after the private-equity organizations that own Caesars starting asking for approval from state video gaming commissions to transfer the benefits entity. On Thursday, it absolutely was expected that the newest Jersey Casino Control Commission would take a vote on the road, but that was delayed until next month. The state’s Division of Gaming Enforcement said which they are currently investigating the request, and haven’t y Continue reading