A examiner that is court-appointed report, ironically published on the Ides of March, discovered evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face vast amounts of bucks in potential damages in relation to its bankruptcy restructuring, in line with the tips of a examiners that are court-ordered report, published Tuesday.
The company is looking for chapter 11 bankruptcy because of its main operating unit, CEOC, so that they can reorganize $18 billion of its debt, it is facing opposition from the junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers which spent an investigating the casino giant’s corporate dealings year.
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 advantage of its controlling equity that is private, while placing them out of the reach regarding the junior creditors.
This form of asset-stripping left CEOC with nothing but assets that are distressed a failure to cover its debts, argues a small grouping of creditors led by the Appaloosa Management hedge fund, that is suing Caesars.
CEOC Possibly Insolvent as Early as 2008
The investigation team poured over 80 million pages of documents to create its 80-page report. But ultimately it all boiled down seriously to one word.
‘ The simple answ