Caesars’ bankruptcy proceedings have become increasingly messy, as the proceedings that are legal it jeopardize its long-term future.
Caesars Entertainment has failed in its bid to possess litigation dismissed by a Delaware judge this week, despite arguing that the ‘material uncertainty’ engendered by the lawsuit against it ‘raises substantial question about the company’s ability to carry on as a going concern.’
It’s the casino giant has used foreboding language whenever describing its long-term future, as it continues to battle its second-lien bondholders over a bankruptcy case that is increasingly complex.
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 a number of CEOC’s assets were fraudulently transferred to Caesars Entertainment along with other subsidiaries for the benefit of its controlling private equity backers.
We Come to Bury Caesars
This left CEOC with distressed assets and an inability to pay it $18 billion debt load, they argue, while placing the most valuable assets out associated with reach associated with bondholders. They also accuse the organization of making a ‘good’ Caesars and a ‘bad’ Caesars; one to hold the properties that are valuable the other to hold the debt.
Caesars argues that it paid value that is good the assets extracted from the operating product, which include Caesars’s World group of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah’s New Orleans, Bally’s vegas and the Total Rewards customer loyalty program, among others.
Attorneys 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.
Beware the Ides of March
It is been a bad number of weeks for Caesars. Last week Judge Benjamin Goldgar, that is hearing the case in Chicago, appointed a court-ordered examiner with unlimited time and budget to investigate the asset transfers and any resulting conflicts of interest.
The request that is initial an examiner had originate 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 company was quizzed by board members regarding 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 part of the plan that is supplemental 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 and a lot of bankruptcy that is complex a generation.’
Carl Icahn Compares Taj Mahal Union Management To Mobsters
Carl Icahn said that union leaders are using tactics similar to those of planned crime. (Image: Huffington Post)
Carl Icahn has put serious cash into the Trump Taj Mahal in an effort to save yourself the Atlantic City casino, but there is been one group it lightly: Unite-HERE Local 54, the union that represents workers at the casino that he hasn’t been on the best of terms with, to put.
Icahn and the union have had plenty of harsh words for one another throughout the past few months, but Icahn may have just ratcheted up the rhetoric further.
Letter Calls Casino Contributions Exorbitant
In a letter delivered to members of the union, the Trump Taj Mahal’s future owner called down the union’s leadership, saying that they were basically extorting money from the casino by picketing the building and attempting to hang on to their past health plan.
‘ Over the final five years, whilst the Taj Mahal moved bankrupt not just once, but twice, your Unite-HERE wellness plan has made $140 million in net income,’ Icahn published into the page. ‘Yet even against 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 excessive contributions 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 contracts with the union, which would enable him to end the health that is current and retirement plans that union workers agreed to.
Icahn would instead have workers just take subsidies and make an application 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 would likely close the casino.
Icahn Says Tactics Remind Him of ‘Bygone Era’
In the letter, Icahn proceeded to compare the techniques of union leaders to those of unscrupulous characters of days gone by.
‘It all reminds me personally of the bygone age when organized crime would demand grocers purchase protection, or suffer bricks being thrown through their shop windows,’ he published. ‘ The only real huge difference right here is that rather of throwing bricks through the Taj Mahal’s windows, your union instead organizes strikes, picketing, boycotts and other assaults to deter clients from patronizing the Taj Mahal.’
That picketing has continued in present weeks. Last Friday, union members demonstrated once again, the time that is fifth have done so since the bankruptcy judge’s decision final October.
‘Carl Icahn has determined to perform the Taj Mahal into the ground while he is waiting to take it over,’ said union president Bob McDevitt. new 3d slots online ‘Today we have been saying we’re perhaps not gonna take this anymore.’
Icahn Approved to Take Over Taj Mahal
Final Thursday, a bankruptcy judge approved a plan which 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 has in the company in trade for that ownership after the company emerges from bankruptcy.
‘The Taj will remain available,’ stated US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it is an effective endeavor.’
That approval came just days after the casino reached a contract with Donald Trump that enables the Taj Mahal to help keep the Trump name attached with it for the foreseeable future. Trump and his child, Ivanka Trump, was fighting to have their family title removed through the place.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who’s got 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 correct: the gambling money of the global globe won’t have a lottery, and that’s in big component to the gambling industry of 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 legislative tries to establish a lottery in Nevada since 1975 have actually failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this week, arguing that voters, rather than the casino industry, must certanly be provided the possibility to determine the issue.
‘ This is a lack of revenue for our state that could be helping the 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 potential for making this happen as he has of… well… winning the lottery.
Since, as we now have already established, Nevada does not have a lottery, that will put his approximated chances at zilch, which, in fairness, is just slightly worse than those living across the border in Ca 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 citizens.’
‘I know it’s been introduced sessions that are several i have been up here, and every 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 associated with present session that is legislative. ‘I just said, ‘I’m gonna give it another shot.’
Nonetheless, any legislation that proposes amending the constitution is going to need a huge amount of support. The bill would have 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 just from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the result that a lottery might have in declare that has one video slot for each and every ten residents. ‘It’s devastating for family members to deal having a one who features a gambling addiction,’ she said. ‘It destroys the grouped family totally.’
Should the issue ever get to public vote, however, it could possibly pass. A 2009 survey showed about 70 percent of voters were in favor. A lottery would bring $48 million a year in revenue for the state, research indicates.
Judge Denies Ivey’s Movement To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey are allowed to continue. (Image: pokerground.com)
Phil Ivey may still come out on ultimately top from the Borgata within the lawsuit over the $9.6 million he won at baccarat using an advantage sorting technique.
But at least for the present time, a judge has stated that the case has enough merit it shouldn’t be tossed out of court entirely, meaning the battle over those millions could continue for many time nevertheless.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the costs against Ivey and other defendant Cheng Yin Sun, allowing the case to continue but giving few clues as to which side could have the top of hand in the legal battle.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions by which he played baccarat at their casino, which include costs of fraud, breach of agreement and violations of RICO racketeering statutes.
Ivey Used Edge Sorting to Beat Casino at Baccarat
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 an approach known as side sorting, by which he obtained conditions for the overall game where he surely could tell whether a card was low or high even when it was face down.
That provided him a massive advantage over the casino in a game where the household typically has an edge that is small.
This was possible because one of the conditions involved having 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 had been then able to distinguish those cards even face down.