A examiner that is court-appointed report, ironically published in the Ides of March, discovered evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face huge amounts of bucks in potential damages with regards to its bankruptcy restructuring, based on the guidelines of a examiners that are court-ordered report, published Tuesday.
The business is looking for chapter 11 bankruptcy for its main operating unit, CEOC, so that they can reorganize $18 billion of its debt, but is facing opposition from its junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers which spent a year investigating the casino giant’s corporate dealings.
Their aim: to determine whether, as alleged, the business fraudulently transferred many of CEOC’s prime assets to Caesars Entertainment and other subsidiaries for the advantage of its controlling private equity backers, while placing them out of the reach for the junior creditors.
This form of asset-stripping left CEOC with absolutely nothing but distressed assets and an incapacity to pay for its debts, argues a team of creditors led by the Appaloosa Management hedge fund, which can be suing Caesars.
CEOC Possibly Insolvent as Early as 2008
The investigation team poured over 80 million pages of documents to produce its 80-page report. But fundamentally it all boiled right down to one word.
‘ The simple answer to t Continue reading