Caesars’ bankruptcy proceedings are becoming increasingly messy, as the proceedings that are legal 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 question about the company’s ability to continue being a going concern.’
It’s the casino giant has used 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 desires 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 as well as other subsidiaries for the benefit of its controlling private equity backers.
We Come to Bury Caesars
This left CEOC with distressed assets as well as an inability to spend it $18 billion debt load, they argue, while placing the most valuable assets out associated with the reach for the bondholders. Additionally they accuse the company of developing a ‘good’ Caesars and a ‘bad’ Caesars; one to put on the properties that are valuable the other to keep the financial obligation.
Caesars argues that it paid value that is good the assets obtained from the operating unit, including 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.
Attorneys for the casino giant have asked that the parent business, Caesars Entertainment, be protected from legal action during the program 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 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 retirement re payments to ex-employees. It’s understood that 63 former workers, from executive level down, are owed nearly $33 million in your retirement payments as part of a plan that is supplemental company inherited through previous acquisitions.
Caesars’ attorney Steven Pesner told the board that the business was ‘looking into’ the matter, but also warned that it was facing ‘the largest & most complex bankruptcy in a generation.’
Carl Icahn Compares Taj Mahal Union Management To Mobsters
Carl Icahn said that union leaders are utilizing tactics comparable to those of arranged crime. (Image: Huffington Post)
Carl Icahn has put lots of money into the Trump Taj Mahal in an attempt to save your self the Atlantic City casino, but there is been one group he was not in the best of terms with, to place it lightly: Unite-HERE Local 54, the union that represents employees at the casino.
Icahn while the union have had plenty of harsh words for one another within the past months that are few but Icahn may have just ratcheted up the rhetoric 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.
‘ on the final five years, as the Taj Mahal moved bankrupt not just once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn published into the page. ‘Yet also against the backdrop of your employer bankruptcy that is entering the next time in 5 years, your union leadership continues to demand that the Taj make excessive 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 allow him to get rid of the health that is current and pension plans that union workers agreed to.
Icahn would instead have workers take subsidies and apply for health care plans under the exchanges put up by the Affordable 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 page, Icahn proceeded to compare the tactics of union leaders to those of unscrupulous characters of the last.
‘It all reminds me of this bygone age when organized crime would demand grocers buy security, or suffer bricks being thrown through their shop windows,’ he had written. ‘ 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 attacks to deter customers from patronizing the Taj Mahal.’
That picketing has continued in present months. Last Friday, union members demonstrated again, the time that is fifth have done so since the bankruptcy judge’s decision last October.
‘Carl Icahn has determined to run the Taj Mahal into the ground while he is waiting to go over,’ said union president Bob McDevitt. ‘we are saying we’re maybe not going to 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 parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns within the ongoing company in trade for that ownership once the business emerges from bankruptcy.
‘The Taj will stay available,’ stated US Bankruptcy Judge Kevin Gross at a hearing last week. ‘And it will likely be an effective endeavor.’
That approval came just times after the casino reached a contract with Donald Trump that will allow the Taj Mahal to keep the Trump name attached to it for the future that is foreseeable. Trump and his child, Ivanka Trump, was in fact fighting to have their family title removed through the location.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who may have 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 right: the gambling money of the globe doesn’t have a lottery, and that is 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 compared to casino industry, ought to be given the chance to determine the issue.
‘ 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 Chances
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 now have already established, Nevada does not have a lottery, that would place his approximated chances at zilch, which, in fairness, is only slightly worse than those living across the border in California or Arizona.
Nevada’s prohibition of lotteries was established at statehood in 1864 and has remained sacrosanct since, although it 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 way of supporting general public education and promoting the ‘health and welfare of senior residents.’
‘I know it is been introduced several sessions since i have been up here, and every time it’s always died. It’s never been able to go forward,’ said Munford, that is due to step down from office at the conclusion associated with current legislative session. ‘I just said, ‘I’m gonna give it another shot.’
However, any legislation that proposes amending the constitution goes to need a huge amount of support. The bill will have to pass not just this session of the Legislature but the 2017 session also, before going to 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 result that the lottery might have in state that has one video slot for every ten residents. ‘It’s devastating for family members to deal having a individual who includes a gambling addiction,’ she said. ‘It destroys the family completely.’
If the issue ever get to public vote, but, it would probably pass. A 2009 survey showed about 70 % of voters were in benefit. A lottery would bring $48 million a year in revenue for hawaii, research suggests.
Judge Denies Ivey’s Movement To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey will be permitted to continue. (Image: pokerground.com)
Phil Ivey may still ultimately emerge on top from the Borgata in the lawsuit over the $9.6 million he won at baccarat having an advantage sorting technique.
But at minimum for the time being, a judge has said that the situation has enough merit so it should not be tossed out of court totally, meaning the battle over those millions could carry 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 fellow defendant Cheng Yin Sun, allowing the case to continue but offering few clues as to which side may have top of the turn in the battle that is legal.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a few sessions in which he played baccarat at their casino, which includes fees of fraud, breach of agreement 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 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 high 3d slots app or low also whenever it ended up being face down.
That offered him an enormous 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 specific kind of Borgata playing cards: purple-backed cards manufactured by Gemaco. Unknown to the casino, this particular brand had backs that have been 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.