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Caesars Wants Bankruptcy Investigator to Probe 2008 Buyout

Caesars Entertainment Corp.’s main operating unit asked a bankruptcy judge to let a court-appointed investigator scrutinize the 2008 buyout that left the casino giant saddled with billions of dollars in unmanageable debt, Bloomberg News reported yesterday. The former prosecutor looking into the bankruptcy of Caesars Entertainment Operating Co. should broaden his probe to include the $30 billion leveraged buyout, the unit said in a filing on Tuesday in U.S. Bankruptcy Court in Chicago. Richard J. Davis was appointed to investigate Caesars’ pre-bankruptcy restructuring actions with the goal of determining which, if any, can be successfully challenged by a lawsuit. Because some creditors have also questioned the 2008 buyout, Davis should also look into that transaction, Caesars said. Any conclusions the examiner reaches on the deal’s legitimacy “will be particularly helpful in assisting the parties in plan negotiations,” the company said. Caesars’ main operating unit filed for bankruptcy in January with a plan to eliminate debt and reorganize itself. The proposal has split creditors holding billions of dollars in claims. Some have sued, saying that the Las Vegas-based company’s pre-bankruptcy actions were illegal and designed to shield the most valuable assets from creditors.

Rule From SEC Would Allow Companies to Take Back Executive Bonuses

Senior executives of companies that publish faulty financial statements would have to give back some of their compensation as punishment for the accounting missteps under a rule proposed on Wednesday by the Securities and Exchange Commission, the New York Times reported today. The rule, required by the Dodd-Frank financial overhaul law, which Congress passed in 2010, is aimed at increasing accountability within corporate America. It focuses on executive bonuses, also known as “incentive-based compensation,” which have grown consistently larger in recent years. Critics of this pay boom say that it creates incentives for executives to cash out quickly, regardless of whether their companies falter in the ensuing years. “These listing standards will require executive officers to return incentive-based compensation that was not earned,” said SEC Chair Mary Jo White. “The proposed rules would result in increased accountability and greater focus on the quality of financial reporting, which will benefit investors and the markets.”

Bankrupt Baha Mar in Bahamas Secures Interim Financing

The bankrupt $3.5 billion Baha Mar mega resort in the Bahamas secured up to $30 million in interim financing yesterday, but it was unclear when construction on the stalled project would resume, Reuters reported yesterday. The resort, bankrolled and built by the Chinese and described on its website as "the world's glamorous, new playground,” is eight to 12 weeks from completion once construction resumes, a lawyer for the resort told a bankruptcy judge. Bankruptcy Judge Kevin Carey approved up to $30 million in interim financing for Baha Mar, one of the biggest commercial construction projects in the Western Hemisphere. Baha Mar's developer, Sarkis Izmirlian, the son of Armenian billionaire Dikran Izmirlian, has agreed to arrange the funding.

Doral Financial Seeks More Time to Control Bankruptcy Case

The bankrupt parent of Puerto Rico’s failed Doral Bank wants three more months to control its chapter 11 case without the threat of rival proposals as it looks to sell off more assets, the Wall Street Journal reported today. Doral Financial Corp. said that while it has “achieved a number of important tasks” in its chapter 11 case so far, including selling its insurance unit, it needs until Oct. 7 to file a viable reorganization plan and until Jan. 5, 2016, to solicit votes on that plan. Without the approval of Bankruptcy Judge Shelley C. Chapman, those periods would expire after July 9 and Sept. 7, respectively. A hearing on the matter is set for July 23, meaning Judge Chapman will likely enter a temporary extension in the meantime.

KKR’s Samson Said to Revive Debt Talks With GSO, Centerbridge

Samson Resources Corp. is reviving talks with its unsecured bondholders on a restructuring plan that would enable it to stay out of bankruptcy court and preserve some value for shareholders, Bloomberg News reported yesterday. The negotiations are pitting the unsecured bondholders — led by Blackstone LP’s credit unit GSO Capital Partners LP, Oaktree Capital Group LP and Centerbridge Capital Partners — against a group of more senior creditors. Samson, a Tulsa, Oklahoma-based natural gas producer owned by KKR & Co., is running a dual-track negotiating process with the two creditor groups. The proposal by the unsecured bondholders calls for Samson to convert its debt into a combination of senior notes and equity. The new debt will be senior to the second-lien term loan, and the group also is considering investing fresh capital into the company.

Returning this year to the Detroit area, in partnership with the Consumer Bankruptcy Association of the Eastern District of Michigan, is ABI’s 11th Annual Detroit Consumer Bankruptcy Conference. This year’s day-long program features sessions on student loans, Law v. Siegel, a Supreme Court update, claims in chapter 13 cases and various issues in chapter 7 cases, and a plenary session on witness preparation, as well as a case law update. Ten bankruptcy judges from the Sixth Circuit are among the expert panelists this year. It is a must-attend program for all Michigan-area consumer bankruptcy practitioners!

 

 

 

 

Conference Address

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The prestigious ABI Corporate Restructuring Competition provides students from leading business schools an opportunity to solve a hypothetical realistic business case of a distressed company before an audience of experts in the turnaround/crisis management/restructuring industries. In addition to the case presentations, there will be a sponsored networking cocktail reception and a dinner, with keynote remarks by Hon. Marjorie Rendell, a federal judge on the U.S. Court of Appeals for the Third Circuit and a former first lady of Pennsylvania.

Past winners include teams from Columbia Business School, The Wharton School, Northwestern University Kellogg Graduate School of Management, New York University Leonard N. Stern School of Business, the Stanford Graduate Business School and Dartmouth College Tuck School of Business. Other competitors include Duke University Fuqua School of Business, Illinois College of Business, University of California – Berkeley Haas School of Management, University of Chicago Booth School of Business and the Yale School of Management.

The annual CRC Reception and Dinner is the networking event of the season and will be attended by leading practitioners, U.S. bankruptcy court judges and participants from ABI’s Complex Financial Restructuring Program. This valuable interaction between student teams and industry professionals contributes to student development and to the professionalism of turnaround/crisis management.

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

ABI’s Complex Financial Restructuring Program is unique. It goes beyond financial and legal theory and takes a practical look into the strategies of restructuring professionals: attorneys, investment bankers and financial advisors. This day-long program, based on a real case study of a troubled company’s efforts to reorganize, will provide insight and practical advice on how to deal with the ethical dilemmas, strategic decisions and negotiations that are part of the day-to-day reality of restructuring practice. If you advise clients on restructuring issues, you can’t afford to miss this one-of-a-kind program.

This year’s program is provided in partnership with the Philadelphia Chapter of TMA.

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

Please join ABI at the 11th Annual International Insolvency & Restructuring Symposium in Spain! The symposium features some of the world’s top professionals in restructuring speaking on the industry’s hottest topics. This educational program has been developed to provide attendees with an interactive learning experience led by a faculty of prominent practitioners and commentators, as well as leading judges. Earn up to 5/6 hours of CLE/CPE hours of credit!

 

 

 

 

Conference Address

Notice: Attendee information is not meant to be used for mass mailings, invitations, bulk emails, e-mail harvesting or any other commercial purpose. Personal or contact information on this list is intended solely for personal use and should not be duplicated, reproduced or distributed to a third party If you are interested in opting out of inclusion of either printed or online attendee lists, please send an email to meetings@abiworld.org.

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