A court-appointed examiner’s report, ironically published regarding the Ides of March, discovered evidence of asset-stripping in Caesars bankruptcy reorganization.
Caesars could face huge amounts of dollars in potential damages in relation to its bankruptcy restructuring, based on the suggestions of a court-ordered examiners’ report, posted Tuesday.
The company is looking play wheres the gold online free for chapter 11 bankruptcy because of its primary operating product, CEOC, in an attempt to reorganize $18 billion of its debt, it is facing opposition from its junior creditors.
Ex-Watergate prosecutor Richard Davis led a team of lawyers which invested a year investigating the casino giant’s corporate transactions.
Their aim: to determine whether, as alleged, the company fraudulently transferred many of CEOC’s prime assets to Caesars Entertainment along with other subsidiaries for the main benefit of its controlling equity that is private, while placing them out of the reach associated with the junior creditors.
This form of asset-stripping left CEOC with absolutely nothing but assets that are distressed an incapacity to cover its debts, argues a group of creditors led by the Appaloosa Management hedge fund, that will be suing Caesars.
CEOC Possibly Insolvent as Early as 2008
The investigation team poured over 80 million pages of documents to produce its 80-page report. But fundamentally it all boiled down to on (mehr …)