Caesars’ Bid To Dismiss Creditor Lawsuits Shot Down By Judge

Caesars’ Bid To Dismiss Creditor Lawsuits Shot Down By Judge

Caesars<span id="more-1579"></span>‘ Bid To Dismiss Creditor Lawsuits Shot Down By Judge

Caesars’ bankruptcy proceedings have become increasingly messy, as the appropriate proceedings against 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 company’s ability to continue being a going concern.’

It’s the casino giant has utilized foreboding language whenever explaining its long-term future, because it continues to battle its second-lien bondholders over an increasingly complex bankruptcy case.

Caesars Entertainment wants 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 advantage of its controlling equity that is private.

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 many valuable assets out regarding the reach associated with bondholders. They also accuse the company of developing a ‘good’ Caesars and a ‘bad’ Caesars; one to keep the properties that are valuable the other to put up the debt.

Caesars argues that it paid value that is good the assets taken from the operating device, including Caesars’s World number of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah’s New Orleans, Bally’s vegas and the Total Rewards customer loyalty program, among others.

Solicitors for the casino giant have expected that the parent company, Caesars Entertainment, be protected from legal action during the program 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, who’s hearing the case in Chicago, appointed a court-ordered examiner with unlimited time and budget to investigate the asset transfers and any ensuing disputes 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 business had been quizzed by board members on the cessation of pension re payments to ex-employees. It’s understood that 63 previous workers, from executive level down, are owed nearly $33 million in retirement re payments as part of the plan that is supplemental 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 and most complex bankruptcy in a generation.’

Carl Icahn Compares Taj Mahal Union Management To Mobsters

Carl Icahn said that union leaders are using tactics comparable to those of planned crime. (Image: Huffington Post)

Carl Icahn has put a lot of money into the Trump Taj Mahal so that you can save yourself the Atlantic City casino, but there’s been one group he wasn’t in the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents employees at the casino.

Icahn as well as 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 even more.

Letter Calls Casino Contributions Excessive

In a letter provided for members of the union, the Trump Taj Mahal’s future owner called out the union’s leadership, saying that they were really extorting cash from the casino by picketing the building and wanting to hold on tight to their past health plan.

‘ on the last five years, as the Taj Mahal has gone bankrupt not simply once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn had written into the letter. ‘Yet even against the backdrop of your company entering bankruptcy for the second time in five years, your union leadership continues to demand that the Taj make exorbitant efforts 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 finish the present medical health insurance and retirement plans that union workers consented to.

Icahn would instead have employees take subsidies and apply for health care plans under the exchanges set up by the Affordable 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 letter, Icahn proceeded to compare the tactics of union leaders to those of unscrupulous characters of the last.

‘It all reminds me of the bygone era when organized crime would demand grocers pay for protection, or suffer bricks being thrown through their shop windows,’ he wrote. ‘ The only real huge difference right here is that instead of throwing bricks through the Taj Mahal’s windows, your union instead organizes hits, picketing, boycotts and other assaults to deter clients from patronizing the Taj Mahal.’

That picketing has continued in recent weeks. Last Friday, union members demonstrated once more, the time that is fifth have done therefore since the bankruptcy judge’s decision last October.

‘Carl Icahn has determined to perform the Taj Mahal into the ground while he is waiting to take it over,’ said union president Bob McDevitt. ‘we are saying we’re perhaps not going to take this anymore. today’

Icahn Approved to Take Over Taj Mahal

Last Thursday, a bankruptcy judge approved an idea that may see Icahn dominate Trump Entertainment Resorts, the parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he has within the company in trade for that ownership after the company emerges from bankruptcy.

‘The Taj will remain open,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it’ll be a successful venture.’

That approval came just times after the casino reached an agreement with Donald Trump that will allow the Taj Mahal to help keep the Trump name attached to it for the near future. Trump and their child, Ivanka Trump, was in fact fighting to have their family title removed from 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:

Assemblyman Harvey Munford really wants to bring the lottery to Nevada. Yes, that is right: the gambling capital of the global world doesn’t have a lottery, and that is in large component to the gambling industry of the gambling capital of the entire world, which doesn’t want the competition. It is even written in to the state’s constitution: no lotteries! Almost 30 attempts that are legislative 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 arguing that voters, rather than the casino industry, should be given the chance to decide the issue week.

‘ This is a loss in revenue for our state that could be assisting the education of our younger constituents,’ he said. ‘It would achieve this without increasing taxes.’

Very Long Chances

Members of the Las Vegas press have noted, wryly, that Munford has about as much potential for making this happen as he has of… well… winning the lottery.

Since, as we’ve already established, Nevada does not need a lottery, that will place his calculated chances at zilch, which, in fairness, is just slightly even worse compared to 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 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’s been introduced a few sessions since i have been up here, and each time it’s always died. It’s never been able to go ahead,’ said Munford, who’s due to step down from office by the end associated with the current legislative session. ‘I just said, ‘I’m gonna give it another shot.’

Conservatives Aghast

However, any legislation that proposes amending the constitution is going to need a huge amount of support. The bill would need to pass not merely this session of the Legislature but the 2017 session also, before going to vote that is public 2018.

And there is opposition not just from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the consequence that a lottery might have in a continuing suggest sphinx 3d slots that has one slot machine game for every single ten residents. ‘It’s devastating for a grouped family members to deal with a individual who includes a gambling addiction,’ she said. ‘It destroys the grouped family totally.’

If the issue ever get to public vote, nevertheless, it may possibly pass. A 2009 study showed about 70 % of voters were in favor. A lottery would bring $48 million an in profit for the state, research suggests year.

Judge Denies Ivey’s Motion To Dismiss Borgata Lawsuit

The Borgata’s lawsuit against Phil Ivey will be permitted to continue. (Image:

Phil Ivey may still ultimately come out on top up against the Borgata within the lawsuit over the $9.6 million he won at baccarat using an edge sorting technique.

But at minimum for now, a judge has stated that the case has enough merit that it should not be tossed out of court entirely, meaning the battle over those millions could carry on 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 continue but giving few clues as to which part might have the top of hand 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, including fees 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 attempting to recover from him. Ivey utilized a technique known as side sorting, by which he obtained conditions for the overall game where he was able to tell whether a card was high or low even when it ended up being face down.

That offered 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 using an shoe that is eight-deck up of a particular 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 had been then in a position to distinguish those cards even face down.


Lascia un commento

Zeus © 2018, All Rights Reserved