Caesars’ bankruptcy proceedings are becoming increasingly messy, as the legal proceedings against it threaten its long-term future.
Caesars Entertainment has failed in its bid to own 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 business’s ability to carry on being a going concern.’
It’s the casino giant has utilized 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 would like 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 lots of CEOC’s assets were fraudulently transferred to Caesars Entertainment along with other subsidiaries for the good thing about 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 valuable assets out of this reach of this bondholders. Additionally they accuse the organization of developing a ‘good’ Caesars and a ‘bad’ Caesars; one to keep the valuable properties, the other to keep the financial obligation.
Caesars argues that it paid value that is good the assets taken from the operating device, 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 loyalty 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 the judge rejected a bid to dismiss or stay the action wednesday.
Beware the Ides of March
It’s been a couple that is bad of 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 initial request for 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 ongoing company was quizzed by board members in the cessation of retirement payments to ex-employees. It’s comprehended that 63 former workers, from executive level down, are owed nearly $33 million in your retirement re payments as part of the plan that is supplemental company inherited through previous acquisitions.
Caesars’ attorney Steven Pesner told the board that the company 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 using tactics similar to those of organized crime. (Image: Huffington Post)
Carl Icahn has put a lot of cash into the Trump Taj Mahal in an attempt to conserve the Atlantic City casino, but there’s been one group that he was not in the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents employees at the casino.
Icahn therefore the union have had plenty of harsh words for each other throughout the past few months, but Icahn may have just ratcheted up the rhetoric further.
Letter Calls Casino Contributions Exorbitant
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, as the Taj Mahal moved bankrupt not simply once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn published into the page. ‘Yet also from the backdrop of your employer entering bankruptcy for the second 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 current contracts with the union, which would enable him to end the present health insurance and pension plans that union workers consented to.
Icahn would instead have workers simply take subsidies and apply 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 tactics of union leaders to those of unscrupulous figures of the past.
‘It all reminds me personally of the bygone period when organized crime would demand grocers pay for protection, or suffer bricks being thrown through their store windows,’ he penned. ‘ The actual only real real huge 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 customers from patronizing the Taj Mahal.’
That picketing has continued in present months. Last Friday, union members demonstrated once again, the fifth time they have done therefore since the bankruptcy judge’s decision last October.
‘Carl Icahn has decided to perform the Taj Mahal into the ground while he is waiting to go over,’ said union president Bob McDevitt. ‘we are saying we’re perhaps not going to take this any longer. today’
Icahn Approved to Take Over Taj Mahal
Last Thursday, a bankruptcy judge approved a plan that will see Icahn dominate Trump Entertainment Resorts, the moms freeslotsnodownload-ca.com and dad company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns in the ongoing company in exchange for that ownership once the company emerges from bankruptcy.
‘The Taj will remain available,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it will be a successful venture.’
That approval came simply times 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 future that is foreseeable. Trump and his child, Ivanka Trump, was indeed fighting to have their family title removed from the place.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, that has 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 world won’t have a lottery, and that’s in large part to the gambling industry regarding the gambling capital of the planet, 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 casino industry, should be provided the chance to choose the problem.
‘ 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 Chances
Members of the vegas press have noted, wryly, that Munford has about as much chance of making this happen as he has of… well… winning the lottery.
Since, as we’ve already established, Nevada does not have a lottery, that will put their calculated chances at zilch, which, in fairness, is 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 method of supporting public education and promoting the ‘health and welfare of senior residents.’
‘I know it’s been introduced several sessions since I’ve been up here, and every time it’s always died. It is never been able to go ahead,’ said Munford, that is due to step down from office by the end for the current legislative session. ‘I just said, ‘I’m gonna give it another shot.’
Nevertheless, any legislation that proposes amending the constitution is certainly going to need an amount that is huge of. The bill would 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 just from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the effect that a lottery might have in a continuing declare that has one slot machine game for every single ten residents. ‘It’s devastating for a grouped household to deal having a one who includes a gambling addiction,’ she said. ‘It destroys the family completely.’
Should the issue ever get to vote that is public nevertheless, it may possibly pass. A 2009 survey showed about 70 percent of voters were in benefit. A lottery would bring $48 million a year in revenue for the state, research shows.
Judge Denies Ivey’s Motion To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey is going to be permitted to continue. (Image: pokerground.com)
Phil Ivey may still ultimately turn out on top up against the Borgata within 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 stated that the full situation has enough merit that it shouldn’t be thrown 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 fellow defendant Cheng Yin Sun, allowing the case to carry on but offering few clues as to which part may have top of the hand in the legal battle.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions in which he played baccarat at their casino, including costs 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 wanting to recover from him. Ivey utilized a method known as advantage sorting, by which he obtained conditions for the overall game where he was able to tell whether a card was high or low also whenever it was face down.
That offered him an enormous advantage over the casino in a game where the house typically has an edge that is small.
This was possible because one of the conditions involved using an eight-deck footwear made 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 were maybe 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.