
A examiner that is court-appointed report, ironically published in the Ides of March, found evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face billions of bucks in potential damages in relation to its bankruptcy restructuring, based on the guidelines of the court-ordered examiners’ report, posted Tuesday.
The business is seeking chapter 11 bankruptcy because of its main operating product, CEOC, in an attempt to reorganize $18 billion of its debt, it is facing opposition from its junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers which invested a 12 months investigating the casino giant’s corporate transactions.
Their aim: to determine whether, as alleged, the company fraudulently transferred many of CEOC’s prime assets to Caesars Entertainment as well as other subsidiaries for the benefit of its controlling equity that is private, while placing them out of the reach of this junior creditors.
This form of asset-stripping left CEOC with nothing but assets that are distressed an inability to pay its debts, argues a group of creditors led by the Appaloosa Management hedge fund, which is 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 eventually it all boiled right down to one word.
‘ The answer that is simple this que