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 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 is the casino giant has used foreboding language when describing its long-term future, because it continues to battle its second-lien bondholders over a bankruptcy case that is increasingly complex.
Caesars Entertainment really wants to put its operating that is main 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 lots of CEOC’s assets were fraudulently transferred to Caesars Entertainment along with other subsidiaries for the good thing about its controlling equity that is private.
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 most assets that are valuable for the reach for the bondholders. Additionally they accuse the company of creating a ‚good‘ Caesars and a ‚bad‘ Caesars; one to put on the properties that are valuable the other to carry the debt.
Caesars argues that it paid value that is good the assets taken from the operating device, which include Caesars’s World Series 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 expected 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 number of months 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 conflicts 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 ongoing company ended up being quizzed by board members on the cessation of retirement payments to ex-employees. It’s recognized that 63 previous workers, from executive level down, are owed nearly $33 million in your retirement payments as part of a supplemental plan the company inherited through previous acquisitions.
Caesars‘ attorney Steven Pesner told the board that the organization was ‚looking into‘ the matter, but also warned that it was facing ‚the largest & most bankruptcy that is complex a generation.‘
Carl Icahn Compares Taj Mahal Union Management To Mobsters
Carl Icahn stated that union leaders are using tactics similar to those of orderly crime. (Image: Huffington Post)
Carl Icahn has put a ton of cash into the Trump Taj Mahal in an attempt to conserve the Atlantic City casino, but there’s been one group which he wasn’t regarding the best of terms with, to place it lightly: Unite-HERE Local 54, the union that represents workers at the casino.
Icahn and also the union have had plenty of harsh words for each other on the past months that are few but Icahn may have just ratcheted up the rhetoric even further.
Letter Calls Casino Contributions Exorbitant
The Trump Taj Mahal’s future owner called out the union’s leadership, saying 3d slots facebook cheat 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 last five years, even though the Taj Mahal went bankrupt not simply once, but twice, your Unite-HERE wellness plan has made $140 million in net income,‘ Icahn had written in the letter. ‚Yet also up against the backdrop of your manager bankruptcy that is entering the next time in 5 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 agreements with the union, which would enable him to end the health that is current and pension plans that union workers consented to.
Icahn would instead have employees just take subsidies and make an application for health care plans under the exchanges put 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 letter, Icahn continued to compare the tactics of union leaders to those of unscrupulous figures of yesteryear.
‚It all reminds me personally of the bygone era when organized crime would demand grocers pay for security, or suffer bricks being thrown through their store windows,‘ he had written. ‚ The only real huge difference here is that instead of throwing bricks through the Taj Mahal’s windows, your union instead organizes strikes, picketing, boycotts and other attacks to deter clients from patronizing the Taj Mahal.‘
That picketing has continued in current weeks. Last Friday, union members demonstrated again, the fifth time they have done therefore since the bankruptcy judge’s decision final October.
‚Carl Icahn has decided to operate the Taj Mahal into the ground while he’s waiting to go over,‘ said union president Bob McDevitt. ‚Today we’re saying we’re maybe not planning to just take this anymore.‘
Icahn Approved to Take Over Taj Mahal
Final Thursday, a bankruptcy judge approved an agenda which will see Icahn take control Trump Entertainment Resorts, the parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he has into the ongoing company in trade for that ownership when the company emerges from bankruptcy.
‚The Taj will stay open,‘ said US Bankruptcy Judge Kevin Gross at a hearing last week. ‚And it’s going to be a successful venture.‘
That approval came just days after the casino reached a contract with Donald Trump that allows the Taj Mahal to keep the Trump name attached with it for the near future. Trump and his child, Ivanka Trump, was indeed fighting to have their family name removed from the location.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who’s got 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 global globe does not have a lottery, and that’s in big part to the gambling industry for the gambling capital of the world, which doesn’t want the competition. It is even written into the state’s constitution: no lotteries! 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, ought to be provided the possibility to decide 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 so without increasing taxes.‘
Members of the vegas 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’ve already established, Nevada does not need a lottery, that could put his projected chances at zilch, which, in fairness, is only slightly worse compared to 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 method of supporting general public education and promoting the ‚health and welfare of senior residents.‘
‚I know it’s been introduced several sessions since i have been up here, and every time it’s always passed away. It is never been able to go forward,‘ said Munford, that is due to step down from office by the end of this current session that is legislative. ‚I just said, ‚I’m gonna give it another shot.‘
Nonetheless, any legislation that proposes amending the constitution is certainly going to need an amount that is huge of. The bill will have to pass not just this session of the Legislature but the 2017 session also, before going to general 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 the lottery might have in state that has one slot machine for each and every ten residents. ‚It’s devastating for household to deal with a individual who features a gambling addiction,‘ she stated. ‚It destroys the grouped family entirely.‘
Should the issue ever get to public vote, nonetheless, it may possibly pass. A 2009 study showed about 70 per cent of voters were in benefit. A lottery would bring $48 million a year in profit for hawaii, research indicates.
Judge Denies Ivey’s Motion To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey will likely be allowed to continue. (Image: pokerground.com)
Phil Ivey may still ultimately emerge on top from the Borgata within the lawsuit over the $9.6 million he won at baccarat utilizing an side sorting technique.
But at minimum for the present time, a judge has said that the full case has enough merit that it shouldn’t be tossed out of court completely, meaning the battle over those millions could continue for some time nevertheless.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the charges against Ivey and other defendant Cheng Yin Sun, allowing the case to continue but giving few clues as to which side might have the upper submit the battle that is legal.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions in 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
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 attempting to recover from him. Ivey used a method 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 whenever it was face down.
That offered him a massive advantage over the casino in a game where the house typically has a tiny edge.
This was possible because one of the conditions involved utilizing an eight-deck footwear made up of a certain 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 had been then able to distinguish those cards even face down.