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 possess 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 used foreboding language whenever describing its long-term future, because it continues to battle its second-lien bondholders over a bankruptcy case that is increasingly complex.
Caesars Entertainment wants to put its main operating unit, Caesars Entertainment Operating Corp. (CEOC), through Chapter 11 proceedings in purchase 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 plus an inability to spend it $18 billion debt load, they argue, while placing the many assets that are valuable regarding the reach of this bondholders. They also accuse the organization of creating a ‘good’ Caesars and a ‘bad’ Caesars; one to carry 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 device, 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 Las Vegas and the Total Rewards customer commitment program, among others.
Solicitors for the casino giant have asked that the parent business, Caesars Entertainment, be protected from appropriate action during the course of the bankruptcy filing of CEOC. But on Wednesday the judge rejected a bid to dismiss or stay the action.
Beware the Ides of March
It is been a bad handful of weeks for Caesars. Last week Judge Benjamin Goldgar, that is hearing the case in Chicago, appointed an examiner that is court-ordered unlimited time and budget to investigate the asset transfers and any resulting disputes of interest.
The request that is initial 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 company ended up being quizzed by board members in the cessation of pension re payments to ex-employees. It’s recognized that 63 former workers, from executive level down, are owed nearly $33 million in your retirement payments as an ingredient 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 and a lot of complex bankruptcy in a generation.’
Carl Icahn Compares Taj Mahal Union Management To Mobsters
Carl Icahn said that union leaders are making use of tactics comparable to those of prepared crime. (Image: Huffington Post)
Carl Icahn has put a ton of cash into the Trump Taj Mahal in an effort to save yourself the Atlantic City casino, but there’s been one group that he was not on the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents workers at the casino.
Icahn and the union have had plenty of harsh words for each other throughout the past months that are few but Icahn may have just ratcheted up the rhetoric even more.
Letter Calls Casino Contributions Exorbitant
In a letter provided for 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 hang on to their previous health plan.
‘ Over the final five years, while the Taj Mahal has gone bankrupt not simply once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn penned within the page. ‘Yet even contrary to the backdrop of your manager bankruptcy that is entering the 2nd time in five years, your union leadership continues to demand that the Taj make exorbitant efforts 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 existing agreements with the union, which would enable him to get rid of the current medical health insurance and retirement plans that union workers agreed to.
Icahn would instead have workers 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’d likely close the casino.
Icahn Says Tactics Remind Him of ‘Bygone Era’
In the page, Icahn proceeded to compare the strategies of union leaders to those of unscrupulous characters of yesteryear.
‘It all reminds me of that bygone age when organized crime would demand grocers buy protection, or suffer bricks being thrown through their shop windows,’ he wrote. ‘ The actual only real real difference here is that rather of throwing bricks through the Taj Mahal’s windows, your union instead organizes hits, picketing, boycotts and other attacks to deter clients from patronizing the Taj Mahal.’
That picketing has continued in current months. Last Friday, union members demonstrated once again, the time that is fifth have done therefore since the bankruptcy judge’s choice https://freeslotsnodownload-ca.com/free-3d-slots/ last October.
‘Carl Icahn has decided to operate the Taj Mahal into the ground while he’s waiting to go on it over,’ said union president Bob McDevitt. ‘Today our company is saying we’re maybe not gonna take this anymore.’
Icahn Approved to Take Over Taj Mahal
Last Thursday, a bankruptcy judge approved a plan that will see Icahn take over Trump Entertainment Resorts, the moms and dad company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns within the ongoing company in trade for that ownership after the business emerges from bankruptcy.
‘The Taj will remain open,’ stated US Bankruptcy Judge Kevin Gross at a hearing last week. ‘And it is a successful venture.’
That approval came just days after the casino reached an agreement with Donald Trump that enables the Taj Mahal to help keep the Trump name mounted on it for the near future. Trump and their child, Ivanka Trump, have been fighting to have their family name removed from the location.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who has a better chance of winning the lottery than he does of establishing one in Nevada. (Image: yogonet.com)
Assemblyman Harvey Munford wants to bring the lottery to Nevada. Yes, that is right: the gambling money of the globe won’t have a lottery, and that’s in large component to the gambling industry associated with gambling capital of the entire world, which doesn’t want the competition. It is even written to the state’s constitution: no lotteries! Very nearly 30 legislative attempts 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 compared to the casino industry, must certanly be given the chance to choose the problem.
‘ This is a loss in revenue for our state that could be helping the education of our younger constituents,’ he said. ‘It would do this without increasing taxes.’
Very Long Odds
Members of the nevada 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 would place his projected chances at zilch, which, in fairness, is slightly even worse than 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 absolutely 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 method of supporting education that is public promoting the ‘health and welfare of senior citizens.’
‘I know it is been introduced a few sessions since I’ve been up here, and every time it’s always passed away. It’s never been able to go ahead,’ said Munford, who is due to step down from office at the conclusion of this present session that is legislative. ‘I just said, ‘I’m gonna give it another shot.’
Nonetheless, any legislation that proposes amending the constitution goes to need a huge amount of support. The bill would need to pass not only this session of the Legislature but the 2017 session also, before going to general public vote in 2018.
And there is opposition not simply from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the consequence that a lottery might have in a continuing declare that has one video slot for each and every ten residents. ‘It’s devastating for a grouped household to deal by having a one who features a gambling addiction,’ she said. ‘It destroys the grouped family entirely.’
Should the issue ever get to vote that is public but, it could possibly pass. A 2009 study showed about 70 per cent of voters were in favor. A lottery would bring $48 million an in profit for the state, research suggests year.
Judge Denies Ivey’s Movement To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey are going to be allowed to continue. (Image: pokerground.com)
Phil Ivey may still ultimately turn out on top up against the Borgata in the lawsuit over the $9.6 million he won at baccarat having an edge sorting technique.
But at minimum for the present time, a judge has stated that the full instance has enough merit so it shouldn’t be tossed out of court totally, meaning the battle over those millions could carry on 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 providing few clues as to which part could have the top of hand in the legal battle.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a series of sessions by which he played baccarat at their casino, including charges 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 attempting to recover from him. Ivey used an approach known as advantage sorting, in which he obtained conditions for the game where he surely could tell whether a card was high or low also whenever it ended up being face down.
That offered him a huge 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 having an shoe that is eight-deck up of a certain kind of Borgata playing cards: purple-backed cards manufactured by Gemaco. Unknown to the casino, this particular brand had backs which were maybe 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.