Caesars Faces Billions in Claims, Research Finds Evidence of Private Equity Asset-Stripping

Caesars Faces Billions in Claims, Research Finds Evidence of Private Equity Asset-Stripping

A examiner that is court-appointed report, ironically published on the Ides of March, found evidence of asset-stripping in Caesars bankruptcy reorganization.

Caesars could face vast amounts of dollars in potential damages in relation to its bankruptcy restructuring, according to the guidelines of a examiners that are court-ordered report, published Tuesday.

The company is seeking chapter 11 bankruptcy for its chief operating unit, CEOC, in an attempt to reorganize $18 billion of its debt, it is facing opposition from the junior creditors.

Ex-Watergate prosecutor Richard Davis led a team of solicitors which invested a 12 months 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 as well as other subsidiaries for the benefit of its controlling private equity backers, while placing them away from the reach for the junior creditors.

This form of asset-stripping left CEOC with absolutely nothing but assets that are distressed a failure to pay its debts, argues a small grouping of creditors led by the Appaloosa Management hedge fund, that will be suing Caesars.

CEOC Possibly Insolvent as Early as 2008

The investigation team poured over 80 million pages of papers to create its 80-page report. But finally it all boiled down to one word.

‘ The answer that is simple this real question is ‘yes’,’ penned Davis, talking about the allegations.

The report unearthed that CEOC was certainly chosen clean of its prize properties for the benefit of its controlling backers, Apollo Global Management and TPG Capital, whose leveraged buy-out of the company in 2008 led to the industry-high debt load.

Davis stated that sometime in 2012, Apollo and TPG started a strategy to weaken CEOC and strengthen their own hand in the preparation for potential bankruptcy procedures. He added that CEOC was possibly insolvent as early as 2008, the non-disclosure of which would have amounted up to a breach of fiduciary duties to the business’s shareholders.

‘In assessing those things of [Caesars Entertainment] and the sponsors (TPG and Apollo), it is important to remember that the sponsors are among the most financially savvy investors in the nation,’ Davis composed.

‘There was never any realistic chance that CEOC would ever pay all of its creditors at par through a refinancing of CEOC’s financial obligation or perhaps, and CEC and [Apollo and TPG], in light of their particular analyses, could maybe not reasonably have thought differently,’ he added.

Apollo Denial

Caesars, however, has branded the report ‘subjective.’ Meanwhile, in a contact to Reuters, Apollo Capital management refuted the findings.

‘We believe Apollo . . . acted appropriately and in good faith to simply help CEOC strengthen its money framework,’ the company stated.

Davis estimated that potential damages for creditors’ claims on the basis of his findings ranged from $3.6 billion to $5.1 billion.

Published on March 15, additionally referred to as Ides of March, which ended up being the date on which Julius Caesar had been assassinated, the report delivered Caesars stock tumbling by 18 % at the close of trading.

Donald Trump Drops from Next GOP Debate After Successful Super Tuesday, Leading Fox News to Cancel Entirely

Donald Trump and Hillary Clinton are closer this morning to securing their respective celebration’s nomination for the presidential general election, after still another dominating Tuesday primary session.

Florida Senator Marco Rubio (shown here earlier this at the CPAC convention in Maryland) announced on Tuesday night that he’s suspending his campaign, following his loss to Donald Trump in Rubio’s home state month. (Image: Cliff Owen/AP)

The Republican that is leading and for the 2016 race both took Florida, North Carolina, and Illinois, while Clinton also claimed Ohio over her challenger, Vermont Senator Bernie Sanders. Trump’s lone defeat came within the Buckeye State, where voters fulfilled their Governor that is current John’s must-win undertaking.

Unfortunately for supporters of Florida Senator Marco Rubio, his campaign’s last stand had been overtaken by the outspoken billionaire businessman in his own state. After the total results, Rubio announced he had been suspending his campaign.

In an election that started with over 20 candidates regarding the two sides, it’s now right down to just five, though political experts have largely reduced Sanders and Kasich. The delegate photo seems to back that notion.

Trump now leads the GOP side with 673 delegates, Cruz has 411, and Kasich has simply 143. A Republican candidate must get 1,237 delegates to secure the nomination and prevent a contested meeting.

Clinton holds 1,568 delegates to Sanders’ 797. The candidate that is democratic 2,383 delegates to become the party’s nominee.

No Show Trump Leads to GOP that is canceled debate Utah

Continuing their trend of always astonishing and never toeing the celebration line, Trump announced previous that he would not partake in next Monday’s scheduled Republican debate in Utah, opting instead to address the American Israel Public Affairs Committee Conference (AIPAC) in Washington, D.C. that day today. The GOP frontrunner reported he’d known nothing associated with the debate that is next a Fox & Friends interview held this morning.

‘ I was really astonished when we heard that Fox called for a debate. Nobody told me about it. I will not be here, no,’ said Trump in his inimitably style that is ingenuous. Fox subsequently cancelled the function after Kasich observed suit and dropped out as well.

‘We had hoped to contrast Governor Kasich’s good comprehensive method of problem solving with Trump’s campaign of unit,’ said John Weaver via email to FOX 13. Weaver is Kasich campaign strategist that is top.

‘this, Donald Trump announced he would not be participating in the debate morning. Fleetingly afterward, John Kasich’s campaign announced that without Trump at the debate, Kasich wouldn’t normally participate. Ted Cruz has expressed a willingness to debate Trump or Kasich — or both. But obviously, there needs to be much more than one participant. Therefore the Salt Lake City debate is cancelled,’ stated Michael Clemente for Fox News this morning.

And Now, Back Once Again to Your Regularly Scheduled Results…

Wednesday early morning the Show-Me State continues to be too close to call on either side. With 99 percent regarding the vote tallied and submitted, Trump holds a 40.8 percent lead over Cruz at 40.6 percent. On the side that is democratic Clinton is edging Sanders 49.6 to 49.4 percent.

Since both relative sides are within usually the one percentage point margin of error, news outlets aren’t calling the race for red baron free slots either Trump or Clinton. Election officials in Missouri say 100 % of precincts are reporting, but that absentee and provisional ballots remain uncounted.

The divide among voters in Missouri highlights the sentiment that is general of 2016 election in the United States. The Republican Party remains conflicted on their tenacious frontrunner, while Democrats continue steadily to ponder whether Clinton has the appeal that is same her spouse or predecessor President Barack Obama.

Will Rubio Back Cruz?

As soon as the favorite among the so-called ‘establishment,’ Rubio’s campaign to become president could have come at the least opportune period in his 44-year life time. Americans are downright angry at politicians, and in the Republican Party, the response so far is Donald Trump.

‘America’s in the exact middle of a genuine political storm, a real tsunami, and we ought to have seen this coming,’ Rubio said evening that is last. ‘After tonight it is clear that while we take the best side, this season we will not be on the winning side.’

GOP strategists against Trump happen calling for either Cruz or Rubio to exit the competition to create a more coalition that is unified the non-traditional conservative.

Avik Roy, Rubio’s campaign manager, composed in a Forbes Wednesday that is op-ed,There is only one option left for conservatives to win the White House. The time to unite around Ted Cruz happens to be.’

North Jersey Casino Expansion Will Go to Public Ballot November 8

The main topic of North Jersey casino expansion goes to the people: New Jersey residents will vote November 8 on the controversial question of casino expansion beyond Atlantic City in their state.

North Jersey gambling enterprises, yay or nay: State Assemblyman Ralph Caputo has called the bill for casino expansion ‘historic,’ but the majority of in Atlantic City are afraid of the consequences should New Jerseyans vote ‘yes’ come November. (Image: watchdog.org)

Both houses voted overwhelmingly in benefit of a bill which will allow voters to choose this fall on whether to break Atlantic City’s longstanding monopoly on casino gaming in the state.

The passage associated with legislation was described as ‘historic,’ by one of its sponsors that are main Assemblyman Ralph Caputo (D-Essex) on Monday. But many in Atlantic City fear that expansion within the north could kill off the seaside that is already struggling, which has lost 25 % of its casinos and some 8,000 jobs within the past two years.

Atlantic City Bankruptcy Warning

Final week, bond credit history analysts at Moody’s Investors Service warned that the town could come to an end of cash within weeks, unless two bills under consideration into the nj-new Jersey legislature are passed. That legislation that will give the state the ability to intervene in the city’s financial affairs.

Meanwhile, proponents of North Jersey expansion think that opening up competition would actually come to Atlantic City’s aid. The bill pledges to $200 million to the city each year, a sum derived from taxes on the casinos that are new the north, as compensation for ceding its 40-year monopoly.

It proposes two casino that is new in the north associated with the state, where lawmakers believe gaming businesses could be more competitive, the theory is that attracting customers to New Jersey from across the Hudson.

Hard Rock Overseas is known to be interested in developing a casino in partnership utilizing the Meadowlands Racetrack in East Rutherford, house to the gambling and New York Jets. There are also proposals for a project in the waterfront in Jersey City, straight across from Lower Manhattan.

Nevertheless No Taxation Figures

Should voters say yes in November, Atlantic City’s current gaming operators will be offered refusal that is first the two licenses, after which the bidding procedure would be exposed to businesses from outside of the state. Developers is barred from building a casino within 72 miles of Atlantic City.

But there continues to be concern that despite its promises of compensation, the bill that is new set no taxation amounts for the proposed properties, and the majority are asking how a decision could possibly be reached without these figures.

Some lawmakers have actually warned that brand New Jersey is playing with fire using its expansion ambitions and that the north isn’t immune to the marketplace saturation that has been visited on Atlantic City by the casino expansion in abutting states.

‘What happens to North Jersey casinos when New York City inevitably gets one?’ demanded State Senator Jim Whelan recently.

It’s all down to the ballot now, and a poll last week suggested that New Jersey voters are very much divided on the matter. According to a survey by Rutgers-Eagleton, 49 percent of New Jerseyans said casino gambling should continue be limited to Atlantic City, while 44 percent think it should elsewhere be allowed.

Amaya Outlook Buoyant Despite 2015 Headwinds, Baazov Offer Still Up in the Air

Amaya CEO David Baazov said which he’s pleased about their company’s performance, despite several facets that hampered profitability in 2015. (Image: Graham Hughes/National Post)

Amaya has announced healthy revenue that is year-on-year of eight percent for 2015.

That’s despite adverse exchange prices, new product rollouts, as well as other nonrecurring costs ensuing in net losses of C$25.9 million (US$20 million), the organization said. This was down considerably from net earnings of C$125.2 million ($93 million) the past 12 months.

While Amaya’s client base is international, with a few 80 percent concentrated in Europe these days, gameplay occurs predominantly in US dollars, which means the organization’s business is afflicted with changes of different currencies contrary to the US dollar.

A strong dollar throughout 2015 lead in a decline in purchasing power for its client base, explained Amaya CFO Daniel Sebag. He said that without these year-over-year changes in exchange rates, total revenue that is yearly have increased 15 percent.

Other facets that impacted profitability through the was the levying of VAT gaming duties, as well as the suspension of real-money operations in certain jurisdictions year.

 

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