{"id":39983,"date":"2016-09-22T15:00:13","date_gmt":"2016-09-22T22:00:13","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=39983"},"modified":"2016-09-23T11:50:47","modified_gmt":"2016-09-23T18:50:47","slug":"caesars-bumps-bankruptcy-offer-1-6-billion","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/","title":{"rendered":"Caesars Bumps up Bankruptcy Offer by $1.6 Billion"},"content":{"rendered":"
\"Caesars
Caesars bankruptcy offer to its junior creditors is increased by $1.6 billion, as private equity backers sweat having to reveal their financial details in public. (Image: Wikipedia.org)<\/figcaption><\/figure>\n

Caesars\u2019 controlling private equity backers, Apollo Global and TPG Capital Management, are ready to sweeten the pot by $1.6 billion, as they vie to win the backing of their junior creditors for a multi-billion-dollar bankruptcy plan.<\/p>\n

Caesars is seeking to reorganize $18 billion of the debt of its main operating unit, Caesars Entertainment Operating Corp (CEOC), to around $10 billion through chapter 11 bankruptcy proceedings.<\/p>\n

But it has been locked in a disagreement with its junior bondholders for almost two years, some of whom are suing to hold the casino giant to guarantees of CEOC\u2019s debts.<\/p>\n

So fraught are the negotiations between CEOC and its junior creditors that earlier this month the firm\u2019s appointed mediator, former federal judge Joseph Farnam, threw in the towel.<\/p>\n

Pony up the Paper <\/b><\/h2>\n

The improved offer comes just one week after bankruptcy judge, Benjamin Goldgar, ruled that top Caesars directors would have to reveal details of their financial wealth to the court, as their creditors push to hold them personally responsible for CEOC\u2019s debts.<\/p>\n

Apollo and TPG\u2019s $30.1 billion leveraged takeover of the company, just before the recession bit hard into the casino industry, left it with an industry-high debt, and Goldgar\u2019s rulings are increasingly working\u00a0against the casino giant.<\/p>\n

Respective Apollo and TPG founders, Marc Rowan and David Bonderman, are two CEC directors who are required to show their bank statements to the courts.<\/p>\n

\n

\u201cThese folks are going to have to pony up the paper,\u201d declared Judge Benjamin Goldgar at a hearing in Chicago last week.<\/strong><\/p>\n<\/blockquote>\n

40 Percent Improvement<\/b><\/h2>\n

The new offer represents a 40 percent improvement on the $5 billion that was on the table last week, which itself was $1.5 billion more than Caesars<\/a> originally offered to contribute. But the junior bondholders have claims of up to $12 billion, which includes a potential $5 billion liability arising from breach of fiduciary duty.<\/p>\n

The bondholders accuse Caesars of stripping CEOC of its most valuable assets for the benefit of its Apollo Global TPG, leaving it with nothing but distressed assets and unpayable debts, an accusation that is tantamount to fraud.<\/p>\n

A court-appointed examiner\u2019s report concluded that CEOC was indeed picked clean of its prize properties and that, in 2012, Apollo and TPG began a strategy to weaken CEOC and strengthen their own hand in the preparation for potential bankruptcy proceedings. It\u2019s also claimed that CEOC<\/a> was possibly insolvent as early as 2008.<\/p>\n

Caesars said its proposal must be accepted by Friday, after which it will expire.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars\u2019 controlling private equity backers, Apollo Global and TPG Capital Management, are ready to sweeten the pot by $1.6 billion, as they vie to win the backing of their junior creditors for a multi-billion-dollar bankruptcy plan. Caesars is seeking to reorganize $18 billion of the debt of its main operating unit, Caesars Entertainment Operating Corp […]<\/p>\n","protected":false},"author":42,"featured_media":39985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18],"tags":[],"acf":[],"yoast_head":"\nCaesars Bumps up Bankruptcy Offer by $1.6 billion<\/title>\n<meta name=\"description\" content=\"Caesars this week increased its offer to its junior creditors as it seeks to escape chapter 11 bankruptcy.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Bumps up Bankruptcy Offer by $1.6 billion\" \/>\n<meta property=\"og:description\" content=\"Caesars this week increased its offer to its junior creditors as it seeks to escape chapter 11 bankruptcy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2016-09-22T22:00:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-09-23T18:50:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/09\/Caesars_Palace_-_Across_Bellagio_Lake.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1536\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/\",\"name\":\"Caesars Bumps up Bankruptcy Offer by $1.6 billion\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/09\/Caesars_Palace_-_Across_Bellagio_Lake.jpg\",\"datePublished\":\"2016-09-22T22:00:13+00:00\",\"dateModified\":\"2016-09-23T18:50:47+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Caesars this week increased its offer to its junior creditors as it seeks to escape chapter 11 bankruptcy.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-bumps-bankruptcy-offer-1-6-billion\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/09\/Caesars_Palace_-_Across_Bellagio_Lake.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2016\/09\/Caesars_Palace_-_Across_Bellagio_Lake.jpg\",\"width\":2048,\"height\":1536,\"caption\":\"Caesars bankruptcy offer to its junior creditors is increased by $1.6 billion, as private equity backers sweat having to reveal their financial details in public. 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