Caesars’ bankruptcy proceedings are getting to be increasingly messy, as the proceedings that are legal it threaten 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 business’s ability to carry on being a going concern.’
It’s the casino giant has used foreboding language when explaining its long-term future, since it continues to battle its second-lien bondholders over a bankruptcy case that is increasingly complex.
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 benefit of its controlling private equity backers.
We Come to Bury Caesars
This left CEOC with distressed assets and an inability to spend it $18 billion debt load, they argue, while placing the most valuable assets out of the reach associated with bondholders. In addition they accuse the business of fabricating a ‘good’ Caesars and a ‘bad’ Caesars; one to put up the properties that are valuable the other to put up the financial obligation.
Caesars argues that it paid good value for the assets taken from the operating product, such as 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, nevada 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 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 bad number of months for Caesars. Last week Judge Benjamin Goldgar, who’s hearing the case in Chicago, appointed an examiner that is court-ordered unlimited time and budget to investigate the asset transfers and any ensuing 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 company was quizzed by board members regarding the cessation of pension payments to ex-employees. It’s recognized that 63 former workers, from executive level down, are owed nearly $33 million in 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 & most 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 orderly crime. (Image: Huffington Post)
Carl Icahn has put a lot of cash into the Trump Taj Mahal in an effort to save yourself the Atlantic City casino, but there is been one group he was not in the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents workers at the casino.
Icahn while the union have had plenty of harsh words for one another over the past few months, but Icahn may have just ratcheted up the rhetoric even more.
Letter Calls Casino Contributions Excessive
In a page sent to members of the union, the Trump Taj Mahal’s future owner called out the union’s leadership, saying that they were basically extorting money from the casino by picketing the building and attempting to hold on to their past health plan.
‘ Over the final five years, even though the Taj Mahal moved bankrupt not simply once, but twice, your Unite-HERE wellness plan has made $140 million in net income,’ Icahn composed in the letter. ‘Yet also against the backdrop of your boss entering bankruptcy for the next time in five years, your union leadership continues to demand that the Taj make exorbitant contributions to 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 agreements with the union, which would enable him to end the current health insurance and retirement plans that union workers consented to.
Icahn would instead have workers simply take subsidies and make 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 would 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 figures of the past.
‘It all reminds me personally of that bygone age when organized crime would demand grocers buy security, or suffer bricks being thrown through their store windows,’ he composed. ‘ The only real distinction 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 recent days. Last Friday, union members demonstrated once more, the fifth time they have done so since the bankruptcy judge’s decision final 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 say we’re perhaps not going to just take this any longer. today’
Icahn Approved to Take Over Taj Mahal
Final Thursday, a bankruptcy judge approved an agenda that may see Icahn take control Trump Entertainment Resorts, the moms and dad company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns into the ongoing company as a swap for that ownership when the business emerges from bankruptcy.
‘The Taj will stay open,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it will likely be a successful venture.’
That approval came just days after the casino reached an agreement with Donald Trump that will allow the Taj Mahal to keep the Trump name attached to it for the foreseeable future. Trump and his child, Ivanka Trump, had been fighting to have their family title removed through the venue.
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 really wants to bring the lottery to Nevada. Yes, that’s right: the gambling money of the global world won’t have a lottery, and that’s in large component 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! Almost 30 attempts that are legislative establish a lottery in Nevada since 1975 have failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this arguing that voters, rather than the casino industry, should be given the chance to decide the issue week.
‘ 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 so without increasing taxes.’
Very Long Chances
Members of the Las vegas, nevada press have noted, wryly, that Munford has about as chance that is much of this happen as he has of… well… winning the lottery.
Since, as we now have already established, Nevada does not need a lottery, that will place their estimated 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 established 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 way of supporting education that is public promoting the ‘health and welfare of senior citizens.’
‘I know it is been introduced sessions that are several 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 at the end of this current legislative session. ‘I just said, ‘I’m gonna give it another shot.’
Nevertheless, any legislation that proposes amending the constitution goes to need an amount that is huge of. The bill will have to pass not merely this session of the Legislature but the 2017 session freeslotsnodownload-ca.com 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 consequence that the lottery might have in a continuing suggest that has one slot machine for every single ten residents. ‘It’s devastating for a grouped family to deal with a one who includes a gambling addiction,’ she stated. ‘It destroys the family entirely.’
If the issue ever get to public vote, nonetheless, it could possibly pass. A 2009 study revealed about 70 percent 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 is going to be permitted to continue. (Image: pokerground.com)
Phil Ivey may still come out on ultimately top from the Borgata into the lawsuit over the $9.6 million he won at baccarat having an edge sorting technique.
But at least for the time being, a judge has said that the case has enough merit that it should not be thrown out of court totally, meaning the battle over those millions could continue for some time still.
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 carry on but giving few clues as to which part might have the upper turn 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, 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 attempting to recover from him. Ivey used a technique known as edge sorting, in which he obtained conditions for the game where he surely could tell whether a card was low or high also when it was face down.
That provided him a massive 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 utilizing an eight-deck footwear made up of a specific kind of Borgata playing cards: purple-backed cards manufactured by Gemaco. Unknown to the casino, this brand that is particular backs which were 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.