Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
US Trustee Nominates Examiner for Caesar's Bankruptcy Proceeding
Author: Joel R. Glucksman
Date: April 7, 2015
Key Contacts
Back
On March 23, a U.S. trustee requested that a judge approve a former Watergate prosecutor to serve as an examiner for Caesar’s Bankruptcy proceedings.
This operating unit of Caesars Entertainment Corp. filed for Chapter 11 bankruptcy protection earlier this year, but only after participating in several transactions that drew substantial scrutiny, according to Reuters.
Need for examiner
Because of these deals, which involved the operating unit switching over the ownership of casinos and other properties to affiliates of its parent company, U.S. Bankruptcy Judge Benjamin Goldgar ruled March 12 that an independent examiner must conduct further inquiry into the agreements, the media outlet reported.
The need to have such an examiner lies in the disputed nature of the transactions, according to the news source. Creditors have alleged that the operating company transferred ownership of its assets so that they would not be able to make good on their claims to these resources. In addition, creditors have alleged these moves violated the law.
Alternatively, Caesars has maintained that the transactions were set up by independent directors and their advisers, The Wall Street Journal reported. In addition, the company contended that the creditors’ allegations lack merit.
Request for examiner
Pursuant to these differing claims, the operating unit of Caesars requested the appointment of an examiner in late February, according to the news source. Because creditors and government officials are usually the ones making these pleas, certain legal experts have perceived the operating unit’s move as atypical.
Under existing bankruptcy code, U.S. trustees with oversight of a particular case can appoint an examiner if there is a possibility of fraud and or misconduct, the media outlet reported. However, bankruptcy lawyers contend that these examiners have contributed to discovering facts in recent years.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, 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
Tariff Response Options for Small Businesses Facing Financial Distress
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
Common Causes of Partnership Disputes and How to Resolve Them
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
Businesses Are Facing Financial Headwinds—A Practical Guide
*** 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
President Trump's Termination of Member Gwynne Wilcox
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
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
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.