Profits were slimmer for International Game Technology in 1Q15, with the company reporting $35 million, 56% less than a year ago. IGT, which is in the process of being acquired by GTECH, offered little commentary on the results. CEO Patti Hart issued a statement that “market challenges remain in the land-based casino business.” However, the company’s social-gaming sector — driven by DoubleDown Casino, up 11% — grew 23%, grossing $91.5 million.
* The former Horizon Casino on the shores of Lake Tahoe, purged of Continued >>
Ruling earlier than expected, U.S. Bankruptcy Court Judge Kevin Gross handed Caesars Entertainment a massive, possibly decisive victory in its bankruptcy fight, transferring the case from Wilmington to Chicago. Gross ruled that Caesars, despite some behavior that “on its face is suspect,” was entitled to “just enough deference” to choose its own battleground, “even though the decision may have been made to favor third parties and insiders” to choose the ground on which it would fight. He added that he felt the Chicago court would apply sufficiently stringent scrutiny to “serious allegations that the debtors’ controlling equity holders, Apollo Capital Group and TPG Capital, engaged in a series of self-dealing transactions.”
Gross said the dissident creditors “raced to Continued >>
It’s Chicken Little time at Caesars Entertainment, where the company is sketching gloom-and-doom scenarios unless the court system goes along with its preferred timeline for a prepackaged bankruptcy. “If you go to the earlier filing day, you likely jettison the [restructuring support agreement],” said a Caesars attorney, referring to the Jan. 12 involuntary bankruptcy filing being pushed by junior bondholders. “Aren’t you sort of manufacturing a restructuring agreement that in fact has holes all through it as a basis for venue,” U.S. Bankruptcy Judge Kevin Gross asked him. Caesars also had to ‘fess up that its Chicago filing was being conducted under the auspices of an affiliate, Des Plaines Development, that is perfectly solvent.
In Wilmington, Gross is weighing arguments as to whether Continued >>