Caesars’ bankruptcy proceedings are getting to be increasingly messy, as the legal proceedings against it jeopardize its long-term future.
Caesars Entertainment has failed in its bid to have 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 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 really wants 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 as well as other subsidiaries for the benefit of its controlling private equity backers.
This left CEOC with distressed assets plus an inability to pay it $18 billion debt load, they argue, while placing the many assets that are valuable for the reach for the bondholders. Additionally they accuse the organization of fabricating a ‘good’ Caesars and a ‘bad’ Caesars; one to carry the valuable properties, the other to put on the debt.
Caesars argues that it paid good value for the assets obtained from the operating product, which include Caesars’s World Series of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah’s New Orleans, Bally’s Las Vegas and the Total Rewards customer loyalty program, among others.
Lawyers for the casino giant have expected that the parent business, Caesars Entertainment, be protected from legal action during the program of the bankruptcy filing of CEOC. But on the judge rejected a bid to dismiss or stay the action wednesday.
It is been a bad handful of days for Caesars. Last week Judge Benjamin Goldgar, who is hearing the case in Chicago, appointed a court-ordered examiner with unlimited time and budget to investigate the asset transfers and any ensuing conflicts of interest.
The initial request for an examiner had come 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 was quizzed by board members on the cessation of pension payments to ex-employees. It’s understood that 63 previous workers, from executive level down, are owed nearly $33 million in retirement re payments as an ingredient of the plan that is supplemental company inherited through previous purchases.
Caesars’ attorney Steven Pesner told the board that the organization was ‘looking into’ the matter, but also warned that it was facing ‘the largest & most bankruptcy that is complex a generation.’
Carl Icahn said that union leaders are utilizing tactics similar to those of orderly crime. (Image: Huffington Post)
Carl Icahn has put lots of money into the Trump Taj Mahal so that you can save yourself the Atlantic City casino, but there’s been one group which he hasn’t been on the best of terms with, to place it lightly: Unite-HERE Local 54, the union that represents employees at the casino.
Icahn and also the union have had plenty of harsh words for each other throughout the past few months, but Icahn may have just ratcheted up the rhetoric further.
The Trump Taj Mahal’s future owner called out the union’s leadership, saying that they were essentially extorting money from the casino by picketing the building and attempting to hold on to their previous health plan in a letter sent to members of the union.
‘ gratis 3d video slots Over the final five years, whilst the Taj Mahal moved bankrupt not simply once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn had written in the page. ‘Yet also from the backdrop of your company bankruptcy that is entering the 2nd time in 5 years, your union leadership continues to demand that the Taj make excessive efforts to 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 agreements with the union, which would allow him to finish the present health insurance and retirement plans that union workers consented to.
Icahn would instead have employees take subsidies and apply for health care plans under the exchanges arranged by the low-cost Care Act. The union is appealing this ruling, but Icahn says that if they should win that appeal, he’d likely close the casino.
In the page, Icahn continued to compare the strategies of union leaders to those of unscrupulous characters of days gone by.
‘It all reminds me personally of this bygone era when organized crime would demand grocers purchase security, or suffer bricks being thrown through their shop windows,’ he published. ‘ The actual only real real difference right here is that rather of throwing bricks through the Taj Mahal’s windows, your union instead organizes hits, picketing, boycotts and other assaults to deter customers from patronizing the Taj Mahal.’
That picketing has continued in recent days. Last Friday, union members demonstrated again, the fifth time they have done therefore since the bankruptcy judge’s decision last October.
‘Carl Icahn has determined to run the Taj Mahal into the ground while he’s waiting to take it over,’ said union president Bob McDevitt. ‘Today we’re saying we’re perhaps not likely to simply take this anymore.’
Final Thursday, a bankruptcy judge approved a plan that will see Icahn dominate Trump Entertainment Resorts, the moms and dad company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns into the company as a swap for that ownership after the business emerges from bankruptcy.
‘The Taj will remain open,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it’s going to be an effective endeavor.’
That approval came just times after the casino reached a contract with Donald Trump that enables the Taj Mahal to keep the Trump name attached with it for the foreseeable future. Trump and their child, Ivanka Trump, had been fighting to have their family name removed from the location.
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 really wants to bring the lottery to Nevada. Yes, that is right: the gambling money of the global world does not have a lottery, and that’s in large part to the gambling industry for the gambling capital of the world, which doesn’t want the competition. It is even written in to the state’s constitution: no lotteries! Very nearly 30 attempts that are legislative establish a lottery in Nevada since 1975 have failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this arguing that voters, rather than the casino industry, should be given the chance to decide the issue week.
‘ This is a loss of revenue for our state that could be helping the scholarly education of our younger constituents,’ he said. ‘It would achieve this 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 have already established, Nevada does not have a lottery, that will place his calculated chances at zilch, which, in fairness, is slightly even worse compared to those living across the border in California or Arizona.
Nevada’s prohibition of lotteries was founded at statehood in 1864 and has remained sacrosanct since, although it had been 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 means of supporting public education and promoting the ‘health and welfare of senior residents.’
‘I know it is been introduced several sessions since I’ve been up here, and each time it’s always passed away. It is never been able to go ahead,’ said Munford, who is due to step down from office at the end regarding the current session that is legislative. ‘I just said, ‘I’m gonna give it another shot.’
Nevertheless, any legislation that proposes amending the constitution goes to need an amount that is huge of. The bill would need to pass not just 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 end result that the lottery might have in state that has one slot machine for each ten residents. ‘It’s devastating for family to deal with a person who includes a gambling addiction,’ she stated. ‘It destroys the family entirely.’
If the issue ever get to public vote, nonetheless, it could possibly pass. A 2009 survey showed about 70 % of voters were in benefit. A lottery would bring $48 million a year in profit for the state, research recommends.
The Borgata’s lawsuit against Phil Ivey is going to be permitted to continue. (Image: pokerground.com)
Phil Ivey may still come out on ultimately top from the Borgata in the lawsuit over the $9.6 million he won at baccarat using an edge sorting technique.
But at minimum for the present time, a judge has stated that the full instance has enough merit that it should not be thrown out of court completely, meaning the battle over those millions could go on for a few time nevertheless.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the fees against Ivey and other defendant Cheng Yin Sun, allowing the case to continue but offering few clues as to which side might have top of the hand in the battle that is legal.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions in which he played baccarat at their casino, which include fees of fraud, breach of agreement and violations of RICO racketeering statutes.
A dispute is concerned by the case over four sessions of baccarat that Ivey played in 2012, during which he won the $9.6 million that the Borgata is now trying to recover from him. Ivey utilized a technique known as advantage sorting, by which he obtained conditions for the game where he was able to tell whether a card was low or high even whenever it ended up being face down.
That gave him a massive advantage over the casino in a game where the household typically has a tiny side.
This was possible because one of the conditions involved using 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 specific brand had 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 able to distinguish those cards even face down.