“I don’t have any authority to disband a committee that the U.S. trustee has appointed,” said Judge A. Benjamin Goldgar, handing a victory to the second-tier debtors in the Caesars Entertainment bankruptcy. Caesars had sought to have the creditors’ watchdog committee dissolved into one representing unsecured creditors. As the Wall Street Journal summarized, the committee has “challenged the legality of several prebankruptcy transactions [Caesars Entertainment Operating Co.] made with its parent company.”
At issue are transactions which transferred $6 billion in assets to other Caesars branches. Paradoxically, the second-tier lenders want to probe the matter on their own while Caesars has called for an independent examiner. So has a group of bondholders and unsecured creditors represented by Wilmington Trust. The second-tier bondholders allege that Continued >>
Revel has been snatched from Glenn Straub‘s grasp, at least for another week, even though Revel AC has switched its position from contentious opposition to Straub to support. Or, as Revel attorney John Cunningham said, they have “82 million reasons” to close the deal. However, Los Angeles-based DTLA Development Group is singing a siren song to Judge Gloria M. Burns. DTLA’s position is that Revel can keep Straub’s $10 million deposit, thereby making their $80 million “offer of funds” the superior bid. Fired back Straub attorney Stuart Moskowitz, “You have no bond, no guarantee, nothing submitted to the court. It’s illusory.” Despite not having been given access to Revel, rival bidder Izek Shomof proclaimed, “We love it, that’s why we’re very interested.”
Straub was not impressed, saying, “This guy from Los Angeles doesn’t know a thing, and I don’t believe he’s a real bidder. He was not there when Continued >>
Gaming is a “soft target” for politicians and the Obama administration is looking into a backdoor method of engorging more gaming taxes. It is “considering” (but not yet imposing) lower thresholds for the “IRS lockdown” on winnings at keno, bingo and slots. In the case of slots, the proposal is fiendishly clever: If you hit a $1,200 jackpot or higher, you would no longer be taxed on that win alone but on any other winnings from the same, 24-hour period. (Ah, the downside of the player’s card!) The official mumbo-jumbo is here.
The taxmen are also considering halving the Continued >>