Judge denies Caesars litigation reprieve in bondholder battle

http://www.marketwatch.com/story/judge-denies-caesars-litigation-reprieve-in-bondholder-battle-2016-08-26-18103195?link=MW_latest_news

Caesars Entertainment Corp. must face bondholders in a multibillion-dollar legal battle that will play out in the coming days, a federal judge ruled Friday.

Caesars’ bankrupt operating unit has previously been able to protect its parent company from bondholder litigation demanding that Caesars CZR, -13.01% honor more than $11 billion in guarantees of the unit’s debt.


so caesars owes $11B?
since it declared bankruptcy, the bondholders went after Caesar's parent company for the $11B?

why would the parent company be liable for bonds for it's subsidiary?
thought that was why companies create subsidiaries-> to shield the parent?

They did it in a very very very shady spin off structure

Didn't they just get approved to open a new resort in Toronto?

I really don't understand how casinos have all these money problems. They literally have the best business model in the world. We give them money and they give us less money back.

Quote: gamerfreak

I really don't understand how casinos have all these money problems. They literally have the best business model in the world. We give them money and they give us less money back.

I'm sure you understand that it is a little more complex than that...

Quote: mrsuit31

I'm sure you understand that it is a little more complex than that...

Slightly... But so many other industries would kill for a business model like that. Literally their only job is to put in place money making machines and not f%%k it up. Yet they f@@k it up every time.

I don't feel for the casinos- but you really have to look deeper then that- how bout places like New York that give 70. Yes 70 percent off the top to the government

Pa is 50 some percent - that's before costs

Quote: gamerfreak

I really don't understand how casinos have all these money problems. They literally have the best business model in the world. We give them money and they give us less money back.

They are just as greedy as you. So they borrow money and buy overpriced casinos and lose more money than you pay them. -EV gets you, debt servicing gets them.

CZR will drop big time or Monday???

Quote: Wizardofnothing

They did it in a very very very shady spin off structure

They did EVERYTHING in a very shady manner ever since they shafted a partner in the development of the original Marina casino site in Atlantic City.

Quote: gamerfreak

I really don't understand how casinos have all these money problems. They literally have the best business model in the world. We give them money and they give us less money back.

Say that to the original builders of the M Resort and Casino seven miles south of the strip.

They built a casino, credit rates soared, economy nose dived, their bonds were sold to a Scotch Bank and whoever bought those bonds wound up owning a brand new casino that did indeed follow your business model and even ran it into the ground for awhile.

The 'nut' is high. Ever since that Mirage opened up with its darned volcano. He had to make a million dollars a day just to meet expenses. Everyone predicted bankruptcy. His first day brought in darn near three million dollars. So all of Vegas (except Dotty) were off and running on the Mega Complex Themed Casino fad. Then those who provided the dancing water canon light show realized that alot of people came to watch the canon but stayed at Budget Places and the race was on to tighten belts, but MBAs and Casino Owners like to tighten the employee's belts, not their own.

The only way to keep the hats in the air was for the Evil Empire to keep juggling. Work miracles on paper until such time as you are so big that you only have to promise miracles, not work them. Keep juggling, keep changing names, keep shuffling things around with interlocking buyouts and soon the 'income' from the casinos can't sustain the corporate debt.

Remember: if the headline reads The Evil Empire is No More. That doesn't mean multimillionaires lost money, it means widows and orphans lost money and pension funds lost money. Not MBAs and Chairmen of the Board.

Being "owner" of a casino means very little if all the casino's profits have to go to service the debt. So the bondholders foreclose and who are the bond holders? The original owners who spun all that debt and sold it off to the women, chldren, pension funds and hapless public.

Whatever they did or tried, it didn't work. They're long on brains and schemes, but short on wisdom.