Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Caesars Creditors Access Pending On Decision
Author: Joel R. Glucksman
Date: May 27, 2015
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Caesars Entertainment Corporation’s operating unit, Caesars Entertainment Operating Co., has agreed to give creditors access to its business records.
In this way, creditors will be able to access records through an independent examiner investigating transactions that predated the unit’s bankruptcy filing, according to Reuters. However, although Caesars has agreed, that does not seal the deal, because a federal judge will not decide whether to approve the agreement until May 11th.
Creditors had originally sought access to this information after alleging Caesars Entertainment Corporation, a major U.S. casino company, used several intercompany deals to transfer ownership of valuable assets to its affiliates, according to a separate Reuters article. The creditors claimed Caesars Entertainment Corporation harnessed these transactions to benefit Apollo Global Management and TPG Capital Management, private equity firms that have interests in the major casino company.
Caesars foul play?
Further, the creditors alleged the deals were illegal attempts made by Caesars Entertainment Corporation to insulate some of CEOC’s assets from creditors, the media outlet reported. Amid these claims, U.S. Bankruptcy Judge Benjamin Goldgar ordered an independent examiner to look into the transactions CEOC made before filing for bankruptcy earlier this year.
In addition to deciding whether to grant creditors access to the records, Judge Goldgar will also determine whether he should approve the request creditors have made to access communications that relate to the odds that CEOC’s restructuring plan will be successful, according to Reuters.
The operating unit recently requested more time to file its own reorganization plan without having to worry about competing plans, asking that the federal court give the company until Nov. 15 to do so, Dow Jones Business News reported. While Caesars Entertainment Corporation has already submitted a proposal, CEOC said in a court filing that the majority of parties want to finalize the subsidiary’s current proposal after the independent examiner’s report is finished.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
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