Meetings & Information


Monday, January 19, 2015

CZR: Caesars bankruptcy gets more complicated

Yoel Minkoff, SA News Editor

  • A judge dealt Caesars Entertainment’s (NASDAQ:CZR) bankruptcy reorganization a possible fatal blow in ruling that the company violated federal law when it shuffled assets and refinanced debt to protect itself from lower-ranking creditors, Bloomberg reports.
  • U.S. District Judge Shira Scheindlin said noteholders' allegations about the transfer of valuable properties away from the unit in August - and the parent’s removal of guarantees for creditors - amount to a violation of the federal Trust Indenture Act of 1939.
  • Caesars' operating unit filed for Chapter 11 on Thursday, three days after second-lien noteholders filed an involuntary bankruptcy petition in Delaware.
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