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• Case | HBS Case Collection | February 2016 (Revised January 2019)

  Bankruptcy at Caesars Entertainment

  Kristin Mugford and David Chan

  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 January 2019.)  View Details

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• Supplement | HBS Case Collection | February 2017 (Revised January 2019)

  Bankruptcy at Caesars Entertainment (B)

  Kristin Mugford

  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; Entertainment and Recreation Industry; Las Vegas;

  Citation:

  Mugford, Kristin. "Bankruptcy at Caesars Entertainment (B)." Harvard Business School Supplement 217-058, February 2017. (Revised January 2019.)  View Details

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• Case | HBS Case Collection | January 2017 (Revised January 2019)

  The Rise and Fall of Lehman Brothers

  Stuart C. Gilson, Kristin Mugford and Sarah L. Abbott

  With nearly $700 billion in assets, Lehman was the largest U.S. bankruptcy in history. In 2007, Lehman achieved record earnings of over $4 billion on revenues of $60 billion. By September 2008 the fourth largest investment bank in the world was bankrupt. How had a successful investment bank with a long and storied history effectively disappeared overnight? This case reviews the decisions made by Lehman’s management, board and government regulators leading up to September 2008 to understand the factors that contributed to this historic event and the choices that might have led to a different outcome. Lehman had an aggressive CEO in Dick Fuld; a “countercyclical” growth strategy; a firm culture that rewarded risk; questionable accounting policies; never before seen levels of market volatility; and a high leverage business model employed by many investment banks. On the fateful “Lehman weekend” of September 13, 2008 the most senior leaders within Treasury, the NY Fed, and the SEC chose not to bail out Lehman and instead advised Lehman’s board to “take action”. In 2010 court-appointed examiner Anton R. Valukas released a landmark 2,200 page report based upon a review of over 34 million documents and 300 interviews to try to understand what happened and the lessons for the future. His findings serve as a basis for this case.

  Keywords: bankruptcy; financial distress; Accounting policies; Business ethics; Financial Reporting; Volatility; Judgments; Financial Crisis; Insolvency and Bankruptcy; Financial Liquidity; Investment Banking; Financial Management; Financial Strategy; Corporate Accountability; Corporate Disclosure; Corporate Governance; Crisis Management; Risk Management; Failure; Business and Government Relations; Ethics; Banking Industry; New York (city, NY);

  Citation:

  Gilson, Stuart C., Kristin Mugford, and Sarah L. Abbott. "The Rise and Fall of Lehman Brothers." Harvard Business School Case 217-041, January 2017. (Revised January 2019.)  View Details

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