Caesars’ bankruptcy proceedings are becoming 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 continue being a going concern.’
It is the casino giant has utilized foreboding language whenever explaining its long-term future, since it continues to battle its second-lien bondholders over an increasingly complex bankruptcy case.
Caesars Entertainment really wants to put its main operating 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 advantageous asset of its controlling private equity backers.
We Come to Bury Caesars
This left CEOC with distressed assets plus an inability to pay it $18 billion debt load, they argue, while placing the most assets that are valuable of the reach for the bondholders. In addition they accuse the business of fabricating a ‘good’ Caesars and a ‘bad’ Caesars; one to keep the properties that are valuable the other to keep the debt.
Caesars argues that it paid value that is good the assets taken from the operating product, 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 Las Vegas and the Total Rewards customer commitment program, among others.
Attorneys for the casino giant have expected that the parent company, 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 couple of days 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 resulting 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 ongoing company had been quizzed by board members in the cessation of pension re payments to ex-employees. It’s comprehended 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 organization 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 stated that union leaders are making use of tactics similar to those of planned crime. (Image: Huffington Post)
Carl Icahn has put a ton of cash into the Trump Taj Mahal in an effort to save the Atlantic City casino, but there’s been one group that he hasn’t been in the best of terms with, to place 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 within the past few months, but Icahn may have just ratcheted up the rhetoric even further.
Letter Calls Casino Contributions Excessive
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.
‘ Over the final five years, even though the Taj Mahal has gone bankrupt not simply once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn wrote within the letter. ‘Yet even up against the backdrop of your boss bankruptcy that is entering the next time in five years, your union leadership continues to demand that the Taj make excessive contributions towards the profitable Unite-HERE heath plan, or else suffer labor unrest.’
Icahn earlier won a ruling from a bankruptcy court that determined he could break existing contracts with the union, which would enable him to finish the health that is current and retirement plans that union workers agreed to.
Icahn would instead have employees take subsidies and submit 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’d likely close the casino.
Icahn Says Tactics Remind Him of ‘Bygone Era’
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 the bygone period when organized crime would demand grocers purchase security, or suffer bricks being thrown through their store windows,’ he had written. ‘ The actual only real real difference here is that rather of throwing bricks through the Taj Mahal’s windows, your union instead organizes strikes, picketing, boycotts and other attacks to deter customers from patronizing the Taj Mahal.’
That picketing has continued in recent weeks. Last Friday, union members demonstrated once again, the time that is fifth have done so since the bankruptcy judge’s choice final October.
‘Carl Icahn has determined to run the Taj Mahal into the ground while he is waiting to take it over,’ said union president Bob McDevitt. ‘we say we’re maybe not going to simply take this any longer. today’
Icahn Approved to Take Over Taj Mahal
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 in trade for that ownership after the company emerges from bankruptcy.
‘The Taj will stay available,’ stated US Bankruptcy Judge Kevin Gross at a hearing last week. ‘And it is an effective endeavor.’
That approval came simply times after the casino reached an agreement with Donald Trump that will allow the Taj Mahal to help keep the Trump name attached with it for the foreseeable future. Trump and his daughter, Ivanka Trump, was in fact fighting to have their family name removed from the place.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who’s 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 correct: the gambling capital of the globe does not have a lottery, and that is in large part to the gambling industry associated with gambling capital of the planet, which doesn’t want the competition. It is even written into the state’s constitution: no lotteries! Very 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 than the casino industry, must be given the chance to determine the issue.
‘ 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 this without increasing taxes.’
Very Long Odds
Members of the Las vegas, 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 need a lottery, that would put their projected chances at zilch, which, in fairness, is slightly even 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 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’s been introduced sessions that are several i have been up here, and each time it’s always passed away. It is never been able to go forward,’ said Munford, who’s due to step down from office at the end associated with current 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 an amount that is huge of. The bill would need to pass not only 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 the lottery might have in a continuing declare that has one video slot for each and every ten residents. ‘It’s devastating for a grouped family to deal with a person who includes a gambling addiction,’ she said. ‘It destroys the family completely.’
If the issue ever get to public vote, nonetheless, it could possibly pass. A 2009 survey revealed about 70 % of voters were in benefit. 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 is going to be allowed to continue. (Image: pokerground.com)
Phil Ivey may still come out on ultimately top against the Borgata into the lawsuit over the $9.6 million he won at baccarat using an side sorting technique.
But at least for now, a judge has said that the full situation has enough merit that it should not be tossed out of court totally, meaning the battle over those millions could carry on for many time still.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the charges against Ivey and fellow defendant Cheng Yin Sun, allowing the case to carry on but giving few clues as to which part may have the upper hand in the legal battle.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a few sessions by which he played baccarat at their casino https://freeslotsnodownload-ca.com/free-3d-slots/, including charges 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 wanting to recover from him. Ivey utilized a technique known as side sorting, in which he obtained conditions for the game where he was able to tell whether a card was high or low even when it had been face down.
That gave him a huge advantage over the casino in a game where the house typically has a small edge.
This was possible because one of the conditions involved utilizing an eight-deck footwear made up of a certain type 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 able to distinguish those cards even face down.