Bankruptcy Case Could Cost Caesars $5.1 Billion in Damages

Bankruptcy Case Could Cost Caesars $5.1 Billion in Damages

Caesars Entertainment Corp. (CEC) may confront $5.1 billion in damages pertaining to a number of business deals that led to its main running unit filing for Chapter 11 bankruptcy security. Which was exactly what an unbiased examiner stated on Tuesday upon publishing the results from a year-long investigation associated with the $18-billion debt situation involving among the world’s gambling operators that are biggest.

Former Watergate investigator Richard Davis and a team of lawyers had been appointed this past year to examine a lot more than 8 million pages of documents and interview 92 people with regards to Caesars Entertainment Operating Company’s (CEOC) bankruptcy filing.

Following a greater than a year-long probe, Mr. Davis and their peers discovered that Caesars, that is owned by Apollo worldwide Management and TPG Capital, removed prime properties, thus making the company incapable to pay a debt that is huge.

The research ended up being initiated this past year, after a number of junior creditors, led by Appaloosa Management, reported that CEOC, regarded as Caesars’ main running device, have been stripped clean of its most readily useful properties and this had benefited the gambling business as well as its owners.

Mr. Davis said in his 80-page summary associated with case that the major operator may 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. Continue reading “Bankruptcy Case Could Cost Caesars $5.1 Billion in Damages”