Those holding the debt will have something more to say about this.
Quote
Originally posted by: alanleroy
You all know that they have already sold Planet Hollywood, the LINQ, Bally's, Cromwell, Harrah’s New Orleans, one Caesar's Tower and other properties to a subsidiary to protect those assets from bankruptcy.
Here's how it works. In 2008 hedgefunds Texas Pacific Group and Apollo Management overpaid for all these acquisitions, rang up 25 billion of debt and took the company private in a highly leveraged buyout. This year they fire sold these assets to themselves for a pittance of short term operating capital.
So those hedge funds will end up with all these properties free and clear. Caesar's Palace, the Rio and Paris (and a few others) will end up with all the debt. The banks and bondholders who financed the original purchasing binge will end up with pennies on the dollar.
This isn't about Unions breaking the company. There is no way in hell that debt would be paid back by operations...even if they cut their labor costs in half. They were betting property values would keep going up and up. Even though that bet didn't work, they (TPG and Apollo) were still able to fraudulently (IMHO) transfer the assets into a shell and leave others holding the bag.
Originally posted by: alanleroy
You all know that they have already sold Planet Hollywood, the LINQ, Bally's, Cromwell, Harrah’s New Orleans, one Caesar's Tower and other properties to a subsidiary to protect those assets from bankruptcy.
Here's how it works. In 2008 hedgefunds Texas Pacific Group and Apollo Management overpaid for all these acquisitions, rang up 25 billion of debt and took the company private in a highly leveraged buyout. This year they fire sold these assets to themselves for a pittance of short term operating capital.
So those hedge funds will end up with all these properties free and clear. Caesar's Palace, the Rio and Paris (and a few others) will end up with all the debt. The banks and bondholders who financed the original purchasing binge will end up with pennies on the dollar.
This isn't about Unions breaking the company. There is no way in hell that debt would be paid back by operations...even if they cut their labor costs in half. They were betting property values would keep going up and up. Even though that bet didn't work, they (TPG and Apollo) were still able to fraudulently (IMHO) transfer the assets into a shell and leave others holding the bag.
