{"id":41172,"date":"2016-10-21T14:00:26","date_gmt":"2016-10-21T21:00:26","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=41172"},"modified":"2019-08-07T07:35:44","modified_gmt":"2019-08-07T14:35:44","slug":"caesars-bankruptcy-plan-may-violate-law-says-bankruptcy-watchdog","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-bankruptcy-plan-may-violate-law-says-bankruptcy-watchdog\/","title":{"rendered":"Caesars Bankruptcy Plan May Violate the Law, Says Bankruptcy Watchdog\u00a0"},"content":{"rendered":"<p class=\"p1\">The US government\u2019s bankruptcy watchdog, US Trustee, has expressed concerns over Caesars Entertainment Corp\u2019s bankruptcy reorganization plan and the deal it has reached with most of its junior creditors.<\/p>\n<figure id=\"attachment_111389\" aria-describedby=\"caption-attachment-111389\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-111389\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/10\/Caesars-entertainment.jpg\" alt=\"\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/10\/Caesars-entertainment.jpg 600w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/10\/Caesars-entertainment-142x95.jpg 142w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/10\/Caesars-entertainment-166x110.jpg 166w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/10\/Caesars-entertainment-450x300.jpg 450w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption  id=\"caption-attachment-111389\"class=\"text-description\">(Image: themuse.com)<\/figcaption><\/figure>\n<p class=\"p1\">The company\u2019s main operating unit, Caesars Entertainment Operating Co. (CEOC), filed for bankruptcy in January 2015 in an attempt to reorganize some $18 billion of its industry-high debt.<\/p>\n<p class=\"p1\">It was promptly sued by its junior creditors who accused the parent company of deliberately stripping CEOC of its prized assets, such as the Linq and Planet Hollywood, for the benefit of its controlling shareholders, Apollo and TPG. These actions left CEOC with nothing but distressed assets and unpayable debts. They argued.<\/p>\n<p class=\"p1\">A court-appointed examiner concluded that CEOC was indeed picked clean of its prize properties. It claimed that, in 2012, Apollo and TPG began a strategy to weaken CEOC and strengthen their own hand in preparation for potential bankruptcy proceedings.<\/p>\n<h2 class=\"p1\"><b>Must Abide by Law<\/b><\/h2>\n<p class=\"p1\">But last month Caesars was able to bring the vast majority of its creditors on board after sweetening the pot. The new deal included a $5 billion contribution by Caesars to CEOC\u2019s reorganization plan in exchange for creditors releasing the company from allegations of asset stripping and from billions of dollars in legal claims.<\/p>\n<p class=\"p1\">But Denise DeLaurent, a lawyer for U.S Trustee warned in court that\u00a0any deal must abide by the law. Her office was currently reviewing \u201cfees and aspects of the deal that released some parties from lawsuits.\u201d<\/p>\n<blockquote class=\"main-blockquote\">\n<p class=\"p1\"><strong>\u201cFrom our perspective even if everyone comes to an agreement, it might still violate the law,\u201d she said.<\/strong><\/p>\n<\/blockquote>\n<h2 class=\"p1\"><b>Just One Creditor Now Holding Out<\/b><\/h2>\n<p class=\"p1\">The slightly better news for Caesars is that, now, just one single creditor is holding out against the new restructuring plan.<\/p>\n<p class=\"p1\">Under the plan, Trilogy Capital Management holds $9.4 million in unsecured notes and has been offered 66 cents on the dollar, in line with other creditors in this class.<\/p>\n<p class=\"p1\">But Trilogy wants 90 cents plus legal expenses. This week the hedge fund appealed against a bankruptcy court ruling preventing them from pursuing litigation against Caesars Entertainment.<\/p>\n<p class=\"p1\">\u201cThe bottom line is Goldman Sachs and the other Favored Noteholders will receive approximately 89 cents on the dollar for their notes \u2026 plus interest and attorneys\u2019 fees, while Trilogy and other disenfranchised noteholders will receive 66 cents on the dollar for the very same investment,\u201d reads Trilogy\u2019s legal filing. \u201cTrilogy simply wants its day in court to demonstrate that this transaction was improper.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US government\u2019s bankruptcy watchdog, US Trustee, has expressed concerns over Caesars Entertainment Corp\u2019s bankruptcy reorganization plan and the deal it has reached with most of its junior creditors. The company\u2019s main operating unit, Caesars Entertainment Operating Co. (CEOC), filed for bankruptcy in January 2015 in an attempt to reorganize some $18 billion of its [&hellip;]<\/p>\n","protected":false},"author":42,"featured_media":111389,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,60,18],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Caesars Bankruptcy Plan May Violate the Law, Says Bankruptcy Watchdog\u00a0<\/title>\n<meta name=\"description\" content=\"US bankruptcy watchdog warns Caesars over new reorganization plan\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Bankruptcy Plan May Violate the Law, Says Bankruptcy Watchdog\u00a0\" \/>\n<meta property=\"og:description\" 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