Ex-Watergate Prosecutor Appointed To Probe Caesars' Bankruptcy
Mar. 31, 2015 8:18 AM ET | About: Caesars Entertainment (CZR)
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- A bankruptcy judge appointed an ex-Watergate prosecutor to examine inter-company asset transfers at Caesars.
- Caesars' main operating subsidiary, CEOC, transferred assets to Caesars Growth Partners in October 2013 and May 2014.
- CEOC was placed into bankruptcy in January 2015. I estimate its fair value to be far less than its $18 billion debt load.
- If the asset transfers were deemed to rob debt holders, a prosecutor may require the transactions to be unwound.
- The investigation does not bode well for Caesars' shareholders.