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
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
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.