Caesars' bankruptcy proceedings are becoming increasingly messy, as the appropriate proceedings against it jeopardize its long-term future.
Caesars Entertainment has failed in its bid to own litigation dismissed by a Delaware judge this week, despite arguing that the 'material uncertainty' engendered by the lawsuit against it 'raises substantial doubt about the company's ability to continue as being a going concern.'
It's the casino giant has used foreboding language whenever explaining its long-term future, because it continues to battle its second-lien bondholders over an increasingly complex bankruptcy case.
Caesars Entertainment would like to put its operating that is main unit Caesars Entertainment Operating Corp. (CEOC), through Chapter 11 proceedings in purchase to restructure its industry-high debt.
However, the second-lien bondholders are suing, claiming that lots of CEOC's assets were fraudulently transferred to Caesars Entertainment along with other subsidiaries for the benefit of its controlling equity that is private.
- 1 Carl Icahn Compares Taj Mahal Union Leaders To Mobsters
- 2 Assemblyman Pushes For Nevada Lottery
- 3 Judge Denies Ivey's Movement To Dismiss Borgata Lawsuit
We Come to Bury Caesars
This left CEOC with distressed assets and an inability to pay it $18 billion debt load, they argue, while placing the most assets that are valuable associated with the reach for the bondholders. Additionally they accuse the organization of making a 'good' Caesars and a 'bad' Caesars; one to carry the properties that are valuable the other to carry the debt.
Caesars argues that it paid good value for the assets taken from the operating device, such as Caesars's World group of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah's New Orleans, Bally's Las Vegas and the Total Rewards customer loyalty program, among others.
Attorneys for the casino giant have asked that the parent business, Caesars Entertainment, be protected from legal action during the course of the bankruptcy filing of CEOC. But on the judge rejected a bid to dismiss or stay the action wednesday.
Beware the Ides of March
It's been a bad number of weeks for Caesars. Last week Judge Benjamin Goldgar, who's hearing the case in Chicago, appointed a court-ordered examiner with unlimited time and budget to investigate the asset transfers and any resulting conflicts of interest.
The initial request for an examiner had originate from Caesars itself, but only in relation to seven transfers challenged by the lawsuit. A spokesman for Caesars declined to comment on the decision.
Then, at a hearing of the Gaming Control Board, the business had been quizzed by board members regarding the cessation of pension re payments to ex-employees. It's grasped that 63 former workers, from executive level down, are owed nearly $33 million in retirement payments as an ingredient of the supplemental plan the company inherited through previous acquisitions.
Caesars' attorney Steven Pesner told the board that the company was 'looking into' the matter, but also warned that it was facing 'the largest and a lot of bankruptcy that is complex a generation.'
Carl Icahn Compares Taj Mahal Union Leaders To Mobsters
Carl Icahn stated that union leaders are making use of tactics comparable to those of planned crime. (Image: Huffington Post)
Carl Icahn has put a ton of cash into the Trump Taj Mahal so that you can save the Atlantic City casino, but there's been one group that he hasn't been regarding the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents employees at the casino.
Icahn and the union have had plenty of harsh words for each other on the past months that are few but Icahn may have just ratcheted up the rhetoric even further.
Letter Calls Casino Contributions Exorbitant
The Trump Taj Mahal's future owner called out the union's leadership, saying that they were essentially extorting money from the casino by picketing the building and attempting to hold on to their previous health plan in a letter sent to members of the union.
' Over the last five years, although the Taj Mahal has gone bankrupt not just once, but twice, your Unite-HERE health plan has made $140 million in net income,' Icahn published into the page. 'Yet even against the backdrop of your company entering bankruptcy for the next time in 5 years, your union leadership continues to demand that the Taj make exorbitant efforts to your profitable Unite-HERE heath plan, or else suffer work unrest.'
Icahn earlier won a ruling from a bankruptcy court that determined he could break existing contracts with the union, which would enable him to end the health that is current and pension plans that union workers consented to.
Icahn would instead have employees simply take subsidies and apply for health care plans under the exchanges arranged by the low-cost Care Act. The union is appealing this ruling, but Icahn says that if they should win that appeal, he would likely close the casino.
Icahn Says Tactics Remind Him of 'Bygone Era'
In the letter, Icahn went on to compare the strategies of union leaders to those of unscrupulous characters of days gone by.
'It all reminds me personally of the bygone era when organized crime would demand grocers buy security, or suffer bricks being thrown through their shop windows,' he composed. ' The only real distinction here is that instead of throwing bricks through the Taj Mahal's windows, your union instead organizes hits, picketing, boycotts and other attacks to deter customers from patronizing the Taj agregar slots 3d max Mahal.'
That picketing has continued in recent days. Last Friday, union members demonstrated again, the time that is fifth have done so since the bankruptcy judge's choice last October.
'Carl Icahn has decided to operate the Taj Mahal into the ground while he is waiting to go on it over,' said union president Bob McDevitt. 'we say we're perhaps not going to just take this any longer. today'
Icahn Approved to Take Over Taj Mahal
Last Thursday, a bankruptcy judge approved an idea that may see Icahn take over Trump Entertainment Resorts, the parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he has in the company in trade for that ownership after the company emerges from bankruptcy.
'The Taj will remain available,' stated US Bankruptcy Judge Kevin Gross at a hearing last week. 'And it will likely be an effective venture.'
That approval came simply times after the casino reached a contract with Donald Trump that allows the Taj Mahal to keep the Trump name mounted on it for the future that is foreseeable. Trump and his daughter, Ivanka Trump, was in fact fighting to have their family title removed through the venue.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, that has a better chance of winning the lottery than he does of establishing one in Nevada. (Image: yogonet.com)
Assemblyman Harvey Munford desires to bring the lottery to Nevada. Yes, that's right: the gambling capital of the global world doesn't have a lottery, and that is in big component to the gambling industry for the gambling capital of the entire world, which doesn't want the competition. It's even written to the state's constitution: no lotteries! Almost 30 attempts that are legislative establish a lottery in Nevada since 1975 have failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this week, arguing that voters, rather than the casino industry, ought to be offered the possibility to choose the issue.
' This is a loss of revenue for our state that could be helping the scholarly education of our younger constituents,' he said. 'It would do so without increasing taxes.'
Very Long Chances
Members of the Las Vegas press have noted, wryly, that Munford has about as much potential for making this happen as he has of… well… winning the lottery.
Since, as we now have already established, Nevada does not have a lottery, that could put their projected chances at zilch, which, in fairness, is slightly even worse than those living across the border in Ca or Arizona.
Nevada's prohibition of lotteries was established at statehood in 1864 and has remained sacrosanct since, although it had been amended by voters in 1990 to allow charity lotteries. Munford's Assembly Joint Resolution No. 6 wants to scrap the ban and embrace a state lottery as a means of supporting public education and promoting the 'health and welfare of senior residents.'
'I know it is been introduced sessions that are several I've been up here, and every time it's always died. It is never been able to go ahead,' said Munford, that is due to step down from office at the conclusion of the present session that is legislative. 'I just said, 'I'm gonna give it another shot.'
But, any legislation that proposes amending the constitution goes to need an amount that is huge of. The bill would have to pass not merely this session of the Legislature but the 2017 session also, before going to vote that is public 2018.
And there is opposition not simply from the casino industry but also from conservative associations. Conservative activist Janine Hansen is aghast at the result that a lottery might have in a continuing state that has one video slot for every ten residents. 'It's devastating for a grouped family members to deal having a one who has a gambling addiction,' she stated. 'It destroys the grouped family totally.'
Should the issue ever get to public vote, nevertheless, it would probably pass. A 2009 survey revealed about 70 percent of voters were in favor. A lottery would bring $48 million a year in profit for hawaii, research shows.
Judge Denies Ivey's Movement To Dismiss Borgata Lawsuit
The Borgata's lawsuit against Phil Ivey will likely be permitted to continue. (Image: pokerground.com)
Phil Ivey may still ultimately come out on top from the Borgata in the lawsuit over the $9.6 million he won at baccarat utilizing an edge sorting technique.
But at least for the present time, a judge has stated that the full situation has enough merit so it shouldn't be thrown out of court entirely, meaning the battle over those millions could carry on for some time still.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey's lawyers to dismiss the costs against Ivey and fellow defendant Cheng Yin Sun, allowing the case to continue but offering few clues as to which part could have the top of submit the legal battle.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a series of sessions by which he played baccarat at their casino, which includes costs of fraud, breach of contract and violations of RICO racketeering statutes.
Ivey Used Edge Sorting to Beat Casino at Baccarat
A dispute is concerned by the case over four sessions of baccarat that Ivey played in 2012, during which he won the $9.6 million that the Borgata is now trying to recover from him. Ivey used a method known as advantage sorting, in which he obtained conditions for the game where he was able to tell whether a card was low or high also when it ended up being face down.
That offered him a massive advantage over the casino in a game where the house typically has a tiny edge.
This was possible because certainly one of the conditions involved having an shoe that is eight-deck up of a specific type of Borgata playing cards: purple-backed cards manufactured by Gemaco. Unknown to the casino, this brand that is particular backs that were maybe not perfectly cut; when Ivey then asked the dealer to turn high cards 180 degrees, ostensibly for superstitious reasons, he had been then able to distinguish those cards even face down.