Caesars’ bankruptcy proceedings are getting to be increasingly messy, as the appropriate proceedings against it threaten its long-term future.
Caesars Entertainment has failed in its bid to own litigation dismissed by a Delaware judge this week, despite arguing that the ‘material uncertainty’ engendered by the lawsuit against it ‘raises substantial doubt about the company’s ability to carry on as being a going concern.’
It is the casino giant has utilized foreboding language when describing its long-term future, because it continues to battle its second-lien bondholders over an increasingly complex bankruptcy case.
Caesars Entertainment desires to put its operating that is main unit Caesars Entertainment Operating Corp. (CEOC), through Chapter 11 proceedings in order to restructure its industry-high debt.
However, the second-lien bondholders are suing, claiming that lots of CEOC’s assets were fraudulently transferred to Caesars Entertainment and other subsidiaries for the advantage of its controlling equity that is private.
We Come to Bury Caesars
This left CEOC with distressed assets as well as an inability to pay it $18 billion debt load, they argue, while placing the most assets that are valuable for the reach regarding the bondholders. In addition they accuse the company of making a ‘good’ Caesars and a ‘bad’ Caesars; one to put up the properties that are valuable the other to put up the debt.
Caesars argues that it paid good value for the assets obtained from the operating unit, such as Caesars’s World number of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah’s New Orleans, Bally’s nevada and the Total Rewards customer commitment program, among others.
Lawyers for the casino giant have asked that the parent business, Caesars Entertainment, be protected from legal action during the course of the bankruptcy filing of CEOC. But on the judge rejected a bid to dismiss or stay the action wednesday.
Beware the Ides of March
It’s been a couple that is bad of for Caesars. Last week Judge Benjamin Goldgar, who is hearing the case in Chicago, appointed an examiner that is court-ordered unlimited time and budget to investigate the asset transfers and any ensuing conflicts of interest.
The initial request for an examiner had result from Caesars itself, but only in relation to seven transfers challenged by the lawsuit. A spokesman for Caesars declined to comment on the decision.
Then, at a hearing of the Gaming Control Board, the business ended up being quizzed by board members regarding the cessation of retirement payments to ex-employees. It’s grasped that 63 previous workers, from executive level down, are owed nearly $33 million in your retirement payments as part of a supplemental plan the company inherited through previous purchases.
Caesars’ attorney Steven Pesner told the board that the business was ‘looking into’ the matter, but also warned that it was facing ‘the largest & most complex bankruptcy in a generation.’
Carl Icahn Compares Taj Mahal Union Management To Mobsters
Carl Icahn stated that union leaders are utilizing tactics similar to those of prepared crime. (Image: Huffington Post)
Carl Icahn has put a lot of cash into the Trump Taj Mahal in an effort to save your self the Atlantic City casino, but there is been one group he wasn’t in the best of terms with, to place it lightly: Unite-HERE Local 54, the union that represents workers at the casino.
Icahn and also the union have had plenty of harsh words for each other on the past few months, but Icahn may have just ratcheted up the rhetoric further.
Letter Calls Casino Contributions Exorbitant
In a page delivered to members of the union, the Trump Taj Mahal’s future owner called away the union’s leadership, saying that they were basically extorting money from the casino by picketing the building and attempting to hold on tight to their past health plan.
‘ on the last five years, as the Taj Mahal moved bankrupt not just once, but twice, your Unite-HERE wellness plan has made $140 million in net income,’ Icahn penned into the page. ‘Yet even contrary to the backdrop of your employer bankruptcy that is entering the next time in five years, your union leadership continues to demand that the Taj make exorbitant contributions towards the profitable Unite-HERE heath plan, or else suffer work unrest.’
Icahn earlier won a ruling from a bankruptcy court that determined he could break current contracts with the union, which would allow him to end the present medical health insurance and retirement plans that union workers consented to.
Icahn would instead have employees take subsidies and make an application for health care plans under the exchanges set up by the low-cost Care Act. The union is appealing this ruling, but Icahn says that if they should win that appeal, he would likely close the casino.
Icahn Says Tactics Remind Him of ‘Bygone Era’
In the page, Icahn continued to compare the tactics of union leaders to those of unscrupulous characters of the last.
‘It all reminds me personally of this bygone period when organized crime would demand grocers purchase protection, or suffer bricks being thrown through their store windows,’ he wrote. ‘ The actual only real real distinction here is that instead of throwing bricks through the Taj Mahal’s windows, your union instead organizes strikes, picketing, boycotts and other attacks to deter clients from patronizing the Taj Mahal.’
That picketing has continued in present weeks. Last Friday, union members demonstrated once again, the fifth time they have done therefore since the bankruptcy judge’s decision last October.
‘Carl Icahn has determined to perform the Taj Mahal into the ground while he’s waiting to go over,’ said union president Bob McDevitt. ‘we are saying we’re perhaps not going to take this any longer. today’
Icahn Approved to Take Over Taj Mahal
Last Thursday, a bankruptcy judge approved an agenda that may see Icahn take control Trump Entertainment Resorts, the parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns in the company in exchange for that ownership when the company emerges from bankruptcy.
‘The Taj will stay open,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it is an effective venture.’
That approval came just days after the casino reached an agreement with Donald Trump that enables the Taj Mahal to keep the Trump name attached to it for the foreseeable future. Trump and his child, Ivanka Trump, was fighting to have their family name removed through the venue.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, that has a better chance of winning the lottery than he does of establishing one in Nevada. (Image: yogonet.com)
Assemblyman Harvey Munford desires to bring the lottery to Nevada. Yes, that is right: the gambling capital of the globe does not have a lottery, and that’s in big component to the gambling industry of this gambling capital of the planet, which doesn’t want the competition. It is even written in to the state’s constitution: no lotteries! Nearly 30 legislative tries to establish a lottery in Nevada since 1975 have failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this week, arguing that voters, rather compared to casino industry, ought to be offered the possibility to decide the problem.
‘ This is a loss of revenue for our state that could be helping the scholarly education of our younger constituents,’ he said. ‘It would do so without increasing taxes.’
Members of the Las Vegas press have noted, wryly, that Munford has about as much possibility of making this happen as he has of… well… winning the lottery.
Since, as we’ve already established, Nevada does not need a lottery, that would place his estimated chances at zilch, which, in fairness, is only slightly worse than those living across the border in Ca or Arizona.
Nevada’s prohibition of lotteries was established at statehood in 1864 and has remained sacrosanct since, although it was amended by voters in 1990 to allow charity lotteries. Munford’s Assembly Joint Resolution No. 6 wants to scrap the ban and embrace a state lottery as a way of supporting education that is public promoting the ‘health and welfare of senior citizens.’
‘I know it is been introduced sessions that are several i have been up here, and every time it’s always died. It’s never been able to go ahead,’ said Munford, who is due to step down from office by the end for the current legislative session. ‘I just said, ‘I’m gonna give it another shot.’
Nevertheless, any legislation that proposes amending the constitution is going to need an amount that is huge of. The bill would need to pass not merely this session of the Legislature but the 2017 session also, before going to vote that is public 2018.
And there is opposition not simply from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the effect that a lottery might have in declare that has one slot machine game for each and every ten residents. ‘It’s devastating for family to deal with a individual who features a gambling addiction,’ she stated. ‘It destroys the grouped family totally.’
Should the issue ever get to public vote, however, it would probably pass. A 2009 study showed about 70 per cent of voters were in favor. A lottery would bring $48 million a year in revenue for the state, research suggests.
Judge Denies Ivey’s Movement To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey is allowed to continue. (Image: pokerground.com)
Phil Ivey may still ultimately emerge on top from the Borgata within the lawsuit over the $9.6 million he won at baccarat having an edge sorting technique.
But at least for the time being, a judge has stated that the full instance has enough merit it shouldn’t be tossed out of court completely, meaning the battle over those millions could go on for some time still.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the costs against Ivey and fellow defendant Cheng Yin Sun, allowing the case 3d sphinx slots to carry on but providing few clues as to which part could have top of the submit the battle that is legal.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions by which he played baccarat at their casino, including costs of fraud, breach of contract and violations of RICO racketeering statutes.
Ivey Used Edge Sorting to Beat Casino at Baccarat
The case concerns a dispute over four sessions of baccarat that Ivey played in 2012, during which he won the $9.6 million that the Borgata is now wanting to recover from him. Ivey used a technique known as side sorting, by which he obtained conditions for the game where he was able to tell whether a card was low or high even when it ended up being face down.
That gave him a massive advantage over the casino in a game where the house typically has an edge that is small.
This was possible because certainly one of the conditions involved utilizing an shoe that is eight-deck up of a particular kind of Borgata playing cards: purple-backed cards manufactured by Gemaco. Unknown to the casino, this brand that is particular backs that have been not perfectly cut; when Ivey then asked the dealer to turn high cards 180 degrees, ostensibly for superstitious reasons, he was then in a position to distinguish those cards even face down.