Try to follow the latest twists and turns in the CZR debacle—
A Caesars Entertainment Corp. (CZR) creditor group said managers should be stripped of control of the casino company’s operating unit because they looted the subsidiary of billions of dollars in assets.
UMB Bank, trustee for first-lien noteholders owed about $1.25 billion, sued Caesars today in Delaware Chancery Court, repeating allegations made by junior creditors in August.
Today’s suit, the first by senior creditors, came after some of them had agreed on the outline of a debt restructuring plan for the operating unit. The first-lien creditors today asked the court to appoint a receiver for the unit ....
.... Bonderman and the other directors “have thoroughly ransacked CEOC in a sweeping and now transparent plan to take CEOC’s prime assets for themselves and leave its liabilities and creditors behind,” according to today’s filing.
Caesars has said its largest division won’t have enough cash to repay debts by the fourth quarter of 2015 if it can’t restructure its obligations through refinancing, creditor negotiations or bankruptcy.
—and then shrug and tell yourself, “It’s business. Nothing unusual here.”
Now, then, how does that feel?
Church, Steven and Laura J. Keller. “Caesars Lenders Seek Receiver, Claiming Unit Was Looted “. Bloomberg. 25 November 2014.