Caesars now warning that current litigation against them could destroy them

[Dan Druff]

Situation sounding fairly dire:

Caesars Entertainment Corp., the casino company whose largest unit is in bankruptcy, warned that lawsuits stemming from its restructuring efforts could endanger its ability to continue operating as a going concern.

If creditors of the subsidiary were to prevail on claims that the company improperly shifted assets from their reach and stripped them of a parent-company guarantee, the outcome “could have a material adverse effect on our business, financial condition, results of operations and cash flows,” the Las Vegas-based company said Monday in a regulatory filing. Caesars shares fell 2.4 percent to $9.39, the lowest since October.

http://www.bloomberg.com/news/articl...concern-status

This could be Caesars pulling a "woe is me" routine in order to scare those suing them (and turn public sentiment against the plaintiffs), but it could also be the beginning of the end.

Hmmm... what to do with me $2360 in RCs....

[FABismonte]

I always thought that CET's shell game of shifting assets prior to the bankruptcy filing was highly suspicious. CET should not be surprised that its creditors fought back. But primarily I see the regulatory filing notice as more of a way to cover itself from shareholder liability by making a disclosure of the possible bad news. At the end of the day I think that the bankruptcy judge and bankruptcy trustee would not want to kill CET as a going concern would better pay off creditors than a liquidated CET could.

I personally keep very little RC's at any time and when I get a few hundred socked away, I convert them to free play. That way I have no RC's to for my host to burn through first before getting the balance of my stay expenses comped. Enjoy many massages with your RC's.

FAB

[Alan Mendelson]

FAB is on the right track. Those reports are filled with every possible negative -- even by healthy companies.

But keep in mind only PART of Caesars is in bankruptcy now. The rest of it could follow.

[regnis]

We actually have a very good bankruptcy judge that was appointed to this case. He likes complex cases like this where he can think and analyze. Very intelligent judge.

He did appoint someone to look into the pre-filing shenanigans. http://www.reuters.com/article/2015/...0WE2YC20150312

I was wondering why they chose to file the bankruptcy in Chicago. While you only need a presence in the venue in which the bankruptcy is filed, I assume Caesars is not an Illinois corporation. I assume they were trying to cherry pick the venue that they felt would best accommodate their bankruptcy--but I don't believe that this judge is favorable to them. Of course in Chicago, the concern is always that the pay-off is in.