Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judge Gives CEOC More Time to Create Restructuring Plan
Author: Joel R. Glucksman
Date: May 20, 2015
Key Contacts
Back
A federal judge recently granted a request made by Caesars Entertainment Operating Co. to continue its “exclusivity” period – that is, the time when only the debtor may file a proposed restructuring plan.
At an April 29 hearing in Chicago, U.S. Bankruptcy Judge Benjamin Goldgar ruled in Caesar’s favor and extended exclusivity until May 27, Reuters reported.
Extension Request
CEOC, the operating unit of major casino company Caesars Entertainment Corporation, asked for the extension so that it could file its proposed plan following the completion of an inquiry launched by an independent examiner, according to Dow Jones Business News.
The independent examiner got involved in the case after creditors alleged that CEOC had illegally transferred its assets to its parent company in an attempt to move them outside the reach of creditors before filing for Chapter 11 bankruptcy protection, Reuters reported in a separate article.
Disputed Transactions
However, Caesars Entertainment Corporation took a different tack, asserting that it transferred the assets at a fair value, according to the news source. Nevertheless, according to Caesar’s, many of the parties-in-interest in the bankruptcy appear not to want to reach an opinion on a Caesar’s plan of reorganization until the court-appointed independent examiner’s report on the asset transfers is complete, Dow Jones Business News reported.
“These cases are in their early stages and numerous outstanding contingencies could have a significant impact on the terms of the plan or a new plan proposed by the debtors,” stated a mid-April filing, which requested that CEOC have the exclusive right until Nov. 15 to file its own plan of reorganization without having to worry about other plans, according to the news source. In addition, Caesar’s asked the court to give it until Jan. 15, 2016, to solicit votes on any plan it files.
Parties involved in bankruptcy cases frequently make these requests for more time, the media outlet reported. Debtors in complicated cases – for example the one involving CEOC – are even more likely to ask for such a concession.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.