
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: December 30, 2014
Partner
201-896-7095 jglucksman@sh-law.comCaesars Entertainment Corp. reportedly signed an agreement with its most-senior creditors on Dec. 19 to put its largest unit into bankruptcy, according to Bloomberg.
The deal is known as a lock-up agreement, and requires the company to put subsidiary Caesars Entertainment Operating Co. into bankruptcy by Jan. 15, the news source explained. The company will still need to get additional creditors to sign on for it to complete its plan to reorganize its $18.4 billion of debt.
A certain percent of first-lien bondholders will need to sign onto the agreement by mid-January for Caesars to file the bankruptcy papers, Bloomberg continued. This would allow the Las Vegas-based company to meet the voting threshold required to approve a bankruptcy plan.
Five first-lien bondholders have already signed the plan, sources told Bloomberg. These included Elliott Management, Brigade Capital Management, DDJ Capital Management, JPMorgan Asset Management and Pacific Investment Management Co.
On Dec. 16, the company triggered a default that started it on a road to bankruptcy by announcing that it will not pay $225 million in bond interest, according to Baltimore Brew. This has caused some uncertainty in cities that host the company’s casinos.
Reporting on the potential impact on Baltimore’s recently opened Horseshoe Casino, the Brew reported that everything was likely to be smooth in the short run. Caesars Entertainment Corp. placed ownership of several casinos into a new company – called Caesars Growth Partners – to separate them from its massive debts. These included Bally’s Las Vegas, Harrah’s New Orleans, Horseshoe Casino and Caesars’ interactive gaming business.
This move has angered bondholders and triggered a number of lawsuits, the news source reported. Bondholders feel that the creation of the new company represents a ploy to keep assets outside of the reach of a bankruptcy. Growth Partners was set up as a “temporary financing vehicle,” meaning that it can be liquidated within three years, causing the assets to return to the parent company. If Caesars is successful in its bankruptcy filing, it will be out from under its debt at that time.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!