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  • February 2016 (Revised March 2019)
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Bankruptcy at Caesars Entertainment

By: Kristin Mugford and David Chan
  • Format:Print
  • | Language:English
  • | Pages:38
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Abstract

Caesars Entertainment was a large casino operator in the United States that had been purchased in a 2008 leveraged buyout by Apollo and TPG. In January 2015, Caesars Entertainment Operating Company (CEOC), its largest subsidiary, filed for Chapter 11. This set up a battle between the company and a set of large, distressed investors. At issue was not only how to restructure the business and reduce Caesars' debt, but also multiple lawsuits alleging that the company had damaged creditors in their quest to preserve equity value. Of particular focus were a series of transactions that took place during 2013 and 2014 to sell assets from one subsidiary to another and to eliminate a valuable parent guarantee that had been granted to CEOC creditors. This case provides a good example of a variety of "defensive maneuvers" employed by companies and their private equity sponsors to protect a troubled investment.

Keywords

Gaming; Chapter 11; Fraudulent Conveyance; Apollo; TPG; Bankruptcy; Leveraged Buyouts; Restructuring; Capital Structure; Insolvency and Bankruptcy; Private Equity; Financial Management; Lawsuits and Litigation; Negotiation; Games, Gaming, and Gambling; Entertainment and Recreation Industry; Las Vegas

Citation

Mugford, Kristin, and David Chan. "Bankruptcy at Caesars Entertainment." Harvard Business School Case 216-052, February 2016. (Revised March 2019.)
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About The Author

Kristin W. Mugford

Finance
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Related Work

    • February 2017
    • Faculty Research

    Bankruptcy at Caesars Entertainment

    By: Kristin Mugford
    • February 2017 (Revised January 2022)
    • Faculty Research

    Bankruptcy at Caesars Entertainment (B)

    By: Kristin Mugford
    • February 2016 (Revised March 2019)
    • Faculty Research

    Bankruptcy at Caesars Entertainment

    By: Kristin Mugford and David Chan
Related Work
  • Bankruptcy at Caesars Entertainment By: Kristin Mugford
  • Bankruptcy at Caesars Entertainment (B) By: Kristin Mugford
  • Bankruptcy at Caesars Entertainment By: Kristin Mugford and David Chan
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