Caesars’ Bid To Dismiss Creditor Lawsuits Shot Down By Judge
Caesars’ bankruptcy proceedings are getting to be increasingly messy, as the appropriate proceedings against it threaten its long-term future.
Caesars Entertainment has failed in its bid to have 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 carry on as 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 a bankruptcy case that is increasingly complex.
Caesars Entertainment desires to put its main operating 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.
We Come to Bury Caesars
This left CEOC with distressed assets plus an inability to pay it $18 billion debt load, they argue, while placing the many assets that are valuable associated with reach regarding the bondholders. Additionally they accuse the business of creating a ‘good’ Caesars and a ‘bad’ Caesars; one to put on the properties that are valuable the other to keep the financial obligation.
Caesars argues that it paid value that is good the assets extracted from the operating device, which include Caesars’s World group of Poker rights, the Octavius Tower, Planet Hollywood Resort & Casino in Las Vegas, Harrah’s New Orleans, vegas slots 3d Bally’s Las Vegas and the Total Rewards customer commitment program, among others.
Attorneys for the casino giant have asked that the parent company, Caesars Entertainment, be protected from legal action during the program of the bankruptcy filing of CEOC. But on Wednesday the judge rejected a bid to dismiss or remain the action.
Beware the Ides of March
It is been a bad number of days 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 come 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 company ended up being quizzed by board members on the cessation of retirement re payments to ex-employees. It’s recognized that 63 former workers, from executive level down, are owed nearly $33 million in retirement re payments as part of the supplemental plan the company inherited through previous purchases.
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 complex bankruptcy in 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 organized crime. (Image: Huffington Post)
Carl Icahn has put lots of money into the Trump Taj Mahal in order to save your self the Atlantic City casino, but there is been one group that he was not on the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents employees at the casino.
Icahn therefore the union have had plenty of harsh words for one another throughout the past few months, but Icahn may have just ratcheted up the rhetoric even more.
Letter Calls Casino Contributions Excessive
In a page sent to members of the union, the Trump Taj Mahal’s future owner called down the union’s leadership, saying that they were really extorting money from the casino by picketing the building and wanting to hold on to their past health plan.
‘ Over the last five years, although the Taj Mahal went bankrupt not just once, but twice, your Unite-HERE wellness plan has made $140 million in net income,’ Icahn composed within the letter. ‘Yet even up against the backdrop of your boss entering bankruptcy for the next time in five years, your union leadership continues to demand that the Taj make exorbitant contributions towards the profitable Unite-HERE heath plan, or else suffer work unrest.’
Icahn earlier won a ruling from a bankruptcy court that determined he could break current agreements with the union, which would enable him to get rid of the present medical health insurance and pension plans that union workers consented to.
Icahn would instead have employees simply take subsidies and make an application for health care plans under the exchanges set up 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 page, Icahn went on to compare the tactics of union leaders to those of unscrupulous characters of yesteryear.
‘It all reminds me personally of this bygone age when organized crime would demand grocers buy protection, or suffer bricks being thrown through their shop windows,’ he wrote. ‘ The actual only real real difference right here is that rather of throwing bricks through the Taj Mahal’s windows, your union instead organizes strikes, picketing, boycotts and other assaults to deter clients from patronizing the Taj Mahal.’
That picketing has continued in recent months. Last Friday, union members demonstrated once more, the time that is fifth have done therefore since the bankruptcy judge’s decision last October.
‘Carl Icahn has decided to operate the Taj Mahal into the ground while he is waiting to go over,’ said union president Bob McDevitt. ‘Today we have been saying we’re maybe not likely to take this anymore.’
Icahn Approved to Take Over Taj Mahal
Final Thursday, a bankruptcy judge approved an agenda that may see Icahn take control Trump Entertainment Resorts, the moms and dad company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns within the company in exchange for that ownership after the company emerges from bankruptcy.
‘The Taj will stay open,’ said US Bankruptcy Judge Kevin Gross at a hearing week that is last. ‘And it’ll be a successful endeavor.’
That approval came just days after the casino reached a contract with Donald Trump that allows the Taj Mahal to help keep the Trump name attached to it for the future that is foreseeable. Trump and their child, Ivanka Trump, was in fact fighting to have their family name removed through the location.
Assemblyman Pushes For Nevada Lottery
Assemblyman Harvey Munford, who may have 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 is correct: the gambling money of the global globe won’t have a lottery, and that’s in big component to the gambling industry of the gambling capital of the planet, which doesn’t want the competition. It is even written in to the state’s constitution: no lotteries! Almost 30 attempts that are legislative establish a lottery in Nevada since 1975 have actually failed.
However, Munford was undeterred as he addressed the Assembly Legislative Operations and Elections Committee this arguing that voters, rather than the casino industry, should be given the chance to decide the issue week.
‘ This is a loss in revenue for our state that could be helping the education of our younger constituents,’ he said. ‘It would do this without increasing taxes.’
Very Long Chances
Members of the Las Vegas press have noted, wryly, that Munford has about as chance that is much of this happen as he has of… well… winning the lottery.
Since, as we have already established, Nevada does not need a lottery, that will put their estimated chances at zilch, which, in fairness, is slightly even worse compared to 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 was 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 general public education and promoting the ‘health and welfare of senior citizens.’
‘I know it is been introduced several sessions since i have been up here, and each time it’s always died. It is never been able to go forward,’ said Munford, who is due to step down from office by the end of this present session that is legislative. ‘I just said, ‘I’m gonna give it another shot.’
But, any legislation that proposes amending the constitution is going to need an amount that is huge of. The bill would need to pass not just 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 consequence that a lottery might have in a continuing state that has one video slot for every single ten residents. ‘It’s devastating for household to deal having a one who features a gambling addiction,’ she said. ‘It destroys the family entirely.’
If the issue ever get to public vote, but, it would probably pass. A 2009 survey revealed about 70 percent of voters were in favor. A lottery would bring $48 million an in profit for the state, research suggests year.
Judge Denies Ivey’s Movement To Dismiss Borgata Lawsuit
The Borgata’s lawsuit against Phil Ivey will likely be allowed to continue. (Image: pokerground.com)
Phil Ivey may still come out on ultimately top up against the Borgata into the lawsuit over the $9.6 million he won at baccarat using an side sorting technique.
But at least for the present time, a judge has stated that the situation has enough merit that it should not be thrown out of court totally, meaning the battle over those millions could go on for many time nevertheless.
District Court Judge Noel Lawrence Hillman denied a motion from Ivey’s lawyers to dismiss the fees against Ivey and fellow defendant Cheng Yin Sun, allowing the case to continue but providing few clues as to which part may have the top of turn in the battle that is legal.
The Borgata Hotel Casino & Spa alleges that Ivey cheated in a number of sessions in which he played baccarat at their casino, which includes fees 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 wanting to recover from him. Ivey utilized an approach known as advantage sorting, by which he obtained conditions for the game where he surely could tell whether a card was low or high even when it ended up being face down.
That gave him a huge 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 using an eight-deck footwear made 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 have been perhaps not perfectly cut; when Ivey then asked the dealer to turn high cards 180 degrees, ostensibly for superstitious reasons, he was then in a position to distinguish those cards even face down.