Caesars Entertainment’s failed businesses have cost the company US$160 million in legal fees.
US.- Caesars Entertainment has revealed the gaming company has spent US$160 million in legal fees during the bankruptcy case. Caesars’ subsidiary Caesars Entertainment Operating Company (CEOC) had introduced a formal document to exit Chapter 11 receivership and reorganise the company.
Caesars filed a summary court last week, revealing that “the nearly three-year bankruptcy tussle over CEC’s struggling main unit Caesars Entertainment Operating Co (CEOC)” has cost the company US$160 million divided up among six different law firms, including US$77 million to Kirkland & Ellis, which served as CEC’s lead counsel.
Last year, Caesars and the warring parties have reached an agreement after the CEOC owners, TPG and Apollo, offered to invest US$5 billion for the reorganisation plan, meaning to surrender their majority interest in the company. In exchange, they asked for releases from billions of dollars in potential liability claims. Nevertheless, U.S. Trustee objected to the releases by describing them as “blanket immunity.”
The Federal watchdog also objected the exculpation of “a wide array of parties for acts far beyond the plan or the Chapter 11 cases.” Caesars would be able to appeal to a higher Court in case the US bankruptcy watchdog Trustee denies the bankruptcy claim. The CEOC’s petition had also been objected by a minority of second-lien bondholders who assured they were receiving less than expected.