Bankruptcy Case Might Cost Caesars $5.1 Billion in Damages
Caesars Entertainment Corp. (CEC) may face up to $5.1 billion in damages related to lots of corporate deals that led to its main operating unit filing for Chapter 11 bankruptcy protection. That was what a completely independent examiner stated on Tuesday upon posting the results from the year-long investigation regarding the $18-billion financial obligation case involving among the world’s gambling operators that are biggest.
Former Watergate investigator Richard Davis and a team of attorneys had been appointed year that is last examine more than 8 million pages of documents and interview 92 people with regards to Caesars Entertainment Operating business’s (CEOC) bankruptcy filing.
Adhering to a greater than a year-long probe, Mr. Davis and his peers found out that Caesars, which can be owned by Apollo Global Management and TPG Capital, disposed of prime properties, hence leaving the business unable to pay a debt that is huge.
The research ended up being initiated year that is last following a number of junior creditors, led by Appaloosa Management, reported that CEOC, known to be Caesars‘ primary working product, was indeed stripped clean of its best properties and this had benefited the gambling business as well as its owners.
Mr. Davis said in their 80-page summary of the case that the operator that is major face between $3.6 billion and $5.1 billion in damages for claims for the fraudulent disposal of assets and violation of fiduciary duties against officials of both CEOC and CEC. Weiterlesen