Ex-Watergate Prosecutor Appointed To Probe Caesars' Bankruptcy

Ex-Watergate Prosecutor Appointed To Probe Caesars' Bankruptcy

Mar. 31, 2015 8:18 AM ET | About: Caesars Entertainment (CZR)by: Shock Exchange

Disclosure: The author is short CZR. (More...)The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Summary

• 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.

http://seekingalpha.com/article/3041346-ex-watergate-prosecutor-appointed-to-probe-caesars-bankruptcy?source=email_rt_article_readmore&auth_param=fjrk2:1ahl5tt:5b61dc6cc50191fcd7456bc4bc371197&uprof=46