{"id":15331,"date":"2015-01-14T11:12:00","date_gmt":"2015-01-14T19:12:00","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=15331"},"modified":"2015-01-14T11:12:00","modified_gmt":"2015-01-14T19:12:00","slug":"caesars-hand-forced-pick-a-peck-of-packer","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/caesars-hand-forced-pick-a-peck-of-packer\/","title":{"rendered":"Caesars’ hand forced; Pick a peck of Packer"},"content":{"rendered":"

Efforts by\u00a0Appaloosa Management<\/strong> and others to push Caesars Entertainment Operating Co.<\/strong> into an involuntary bankruptcy have lit a fire under Caesars. The company is \"Loveman<\/a>moving its planned bankruptcy filing up from Jan. 20 to tomorrow<\/a>. \u00a0Appaloosa and cohorts\u00a0Tennenbaum Capital Partners LLC<\/strong> and Oaktree Capital Management<\/strong>, however are going to seek to prevent Caesars — which is incorporated in Delaware<\/strong> — from filing anywhere until their own involuntary bankruptcy motion is heard in the Diamond\u00a0State.<\/p>\n

“If the restructuring goes as planned for Caesars\u2019s owners, Apollo<\/strong> [Management<\/strong>] and TPG<\/strong> will keep a stake in the parent company, allowing them to share in the upside if its fortunes improve,” reports the Wall Street Journal<\/em>. One would expect no less, especially after Caesars Growth Properties<\/strong> cherry-picked the best and newest assets in what one plaintiff called\u00a0\u201ca case of unimaginably brazen corporate looting.\u201d At times it seems as though the point of this whole exercise is for CEO Gary Loveman<\/strong>, co-owner Leon Black<\/strong> and ancient Texas Pacific Group<\/strong> boss David Bonderman<\/strong> to come out smelling like roses.<\/p>\n

* Caesars also made headlines locally by moving to benefit from a federal terrorism-insurance program. This isn’t just good sense, it’s praiseworthy. The legislation, which was \"caesars-palace\"<\/a>extended last week (now that former Sen. Tom Coburn<\/strong> [R] is no longer around to impede it<\/a>) makes businesses whole from terrorism-related losses exceeding $200 million. And, given the target-rich environment presented<\/a> by Las Vegas<\/strong> (a city that’s on Al-Qaeda<\/strong>‘s wish list of destruction), who needs it more than we do? As Caesars spokesman Gary Thompson<\/strong> put it,\u00a0\u201cCasinos are a potential target, as are other businesses, for terrorists because there are large numbers of people who are potential victims.\u00a0The need for federal protection from terrorist attacks in terms of insurance liabilities is critical, because it could put a company out of business if an attack were launched on a casino.\u201d<\/p>\n

The congressional vote was overwhelming and even though the program has never been needed, better safe than sorry.\u00a0Naysayers like the R Street Institute<\/strong> think the insurance \"DeanHeller\"<\/a>shouldn’t kick in until the billion-dollar threshold in damages has been reached, which would truly be catastrophic.\u00a0“This bill doesn’t just benefit New York<\/strong>.\u00a0It benefits the skyscraper in Los Angeles<\/strong>, the sports stadium in Nebraska<\/strong>, the shopping center in Tennessee<\/strong>,” rejoined Sen. Charles Schumer<\/strong> (D), speaking for the bipartisan support the bill received from the likes of Nevada’s Sen. Dean Heller<\/strong> (R, right<\/em>), who posited that an act of terrorism could cripple Nevada’s entire economy. Construction companies (*cough*Genting Group<\/strong>*cough*) are loath to proceed with new projects unless the federal insurance is in place.<\/p>\n

Both American Gaming Association President Geoff Freeman<\/strong> and Rep. Dina Titus<\/strong> (D) helped push the ball over the goal line, with Freeman soaping Sen. Harry Reid<\/strong> (D) for his support. God forbid any violent zealotry — whether foreign or domestic — breaks out in Las Vegas, but Congress has a least moved proactively to soften any theoretical blow.<\/p>\n