Caesars’ Bid To Dismiss Creditor Lawsuits Shot Down By Judge

Caesars<span id="more-13606"></span>‘ Bid To Dismiss Creditor Lawsuits Shot Down By Judge

Caesars’ bankruptcy proceedings are getting to be 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 question about the company’s ability to carry on being a going concern.’

It is the casino giant has utilized foreboding language when describing its long-term future, because it continues to battle its second-lien bondholders over an increasingly complex bankruptcy case.

Caesars Entertainment really wants 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 as well as other subsidiaries for the advantageous asset of its controlling private equity backers.

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 most valuable assets out of the reach regarding the bondholders. Additionally they accuse the organization of making a ‘good’ Caesars and a ‘bad’ Caesars; one to put up the properties that are valuable the other to hold the debt.

Caesars argues that it paid value that is good the assets taken from the operating device, including Caesars’s World number 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 company, Caesars Entertainment, be protected from legal action during the course of the bankruptcy filing of CEOC. But on Wednesday the judge rejected a bid to dismiss or stay the action.

Beware the Ides of March

It is been a couple that is bad of for Caesars. Last week Judge Benjamin Goldgar, who is hearing the case in Chicago, appointed an examiner that is court-ordered unlimited time and budget to investigate the asset transfers and any ensuing disputes 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 ongoing business was quizzed by board members in the cessation of retirement payments to ex-employees. It’s grasped that 63 previous workers, from executive level down, are owed nearly $33 million in retirement payments as part of a supplemental plan the company inherited through previous acquisitions.

Caesars’ attorney Steven Pesner told the board that the business was ‘looking into’ the matter, but also warned that it was facing ‘the largest and most bankruptcy that is complex a generation.’

Carl Icahn Compares Taj Mahal Union Management To Mobsters

Carl Icahn stated that union leaders are making use of tactics similar to those of orderly crime. (Image: Huffington Post)

Carl Icahn has put serious cash into the Trump Taj Mahal in an attempt to save the Atlantic City casino, but there is been one group he hasn’t been in the best of terms with, to put it lightly: Unite-HERE Local 54, the union that represents employees at the casino.

Icahn and also the union have had plenty of harsh words for each other over the past months that are few but Icahn may have just ratcheted up the rhetoric even more.

Letter Calls Casino Contributions Excessive

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.

‘ on the final five years, while the Taj Mahal went bankrupt not just once, but twice, your Unite-HERE health plan has made $140 million in net income,’ Icahn wrote within the page. ‘Yet also from the backdrop of your boss 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 labor unrest.’

Icahn earlier won a ruling from a bankruptcy court that determined he could break current agreements with the union, which would allow him to get rid of the current medical insurance and pension plans that union workers agreed to.

Icahn would instead have employees just take subsidies and submit an application for health care plans under the exchanges put up by the low-cost Care Act. The union is appealing this ruling, but Icahn says that if they should win that appeal, he’d 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 the last.

‘It all reminds me personally of that bygone age when organized crime would demand grocers purchase security, or suffer bricks being thrown through their store windows,’ he composed. ‘ The actual only real real distinction right 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 clients from patronizing the Taj Mahal.’

That picketing has continued in current days. 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 determined to perform the Taj Mahal into the ground while he is waiting to take it over,’ said union president Bob McDevitt. ‘Today our company is saying we’re perhaps not planning to just take this anymore.’

Icahn Approved to Take Over Taj Mahal

Last Thursday, a bankruptcy judge approved an idea that will see Icahn dominate Trump Entertainment Resorts, the parent company of the Taj Mahal. Icahn will swap $286 million worth of debt he owns within the ongoing company in trade 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 will likely be an effective venture.’

That approval came simply days after the casino reached an agreement with Donald Trump that will allow the Taj Mahal to keep the Trump name attached with it for the future that is foreseeable. Trump and their child, Ivanka Trump, was fighting to have their family name removed from the place.

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 really wants to bring the lottery to Nevada. Yes, that is right: the gambling money of the global world won’t have a lottery, and that’s in big part to the gambling industry associated with gambling capital of the entire world, which doesn’t want the competition. It’s even written in to the state’s constitution: no lotteries! Nearly 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 of revenue for our state that could be assisting the education of our younger constituents,’ he said. ‘It would achieve this without increasing taxes.’

Very Long Odds

Members of the nevada 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 have a lottery, that will put their predicted chances at zilch, which, in fairness, is only slightly 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 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 way of supporting public education and promoting the ‘health and welfare of senior residents.’

‘I know it is been introduced a few sessions since i have been up here, and every time it’s always passed away. It’s never been able to go forward,’ said Munford, who is due to step down from office by the end associated with the present session that is legislative. ‘I just said, ‘I’m gonna give it another shot.’

Conservatives Aghast

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But, any legislation that proposes amending the constitution is going to need an amount that is huge of. The bill will have to pass not merely this session of the Legislature but the 2017 session also, before going to general public vote in 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 slot machine for every ten residents. ‘It’s devastating for a grouped family members to deal having a person who features a gambling addiction,’ she stated. ‘It destroys the grouped family completely.’

Should the issue ever get to public vote, nevertheless, it could possibly pass. A 2009 study 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 be permitted to continue. (Image: pokerground.com)

Phil Ivey may still come out on ultimately top up against the Borgata within the lawsuit over the $9.6 million he won at baccarat using an advantage sorting technique.

But at least for the present time, a judge has stated that the instance has enough merit that it shouldn’t be thrown out of court totally, meaning the battle over those millions could go on for some time nevertheless.

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 carry on but providing few clues as to which side could have top of the submit the legal battle.

The Borgata Hotel Casino & Spa alleges that Ivey cheated in a few sessions by which he played baccarat at their casino, which includes charges 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 utilized a method known as edge sorting, in which he obtained conditions for the overall game where he surely could tell whether a card was high or low even when it was face down.

That gave him a huge advantage over the casino in a game where the household typically has a small advantage.

This was possible because one of the conditions involved having an shoe that is eight-deck up of a particular kind 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.

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