The restructuring efforts of Caesars Entertainment Operating Company is currently being investigated by an examiner, former federal prosecutor Richard Davis. The report by Davis was scheduled to be ready by the 15th of December, but Davis says this deadline will not be met. The company has a deal with the senior lenders to reach the deadline but Davis has not been able to interview several witnesses who were involved with actions of the casino company such as asset transfers.
Around 20 witnesses are left to be interviewed by Davis to learn information on the company as they seek to file for bankruptcy protection in January. As the examiner of the investigation, Davis is not bound by the deadline, but he was trying to meet the date so that Caesars would not be in violation of the agreement set with the lenders.
In the agreement, Caesars must win the approval of the court for an outline of the plan to reorganize by the 16th of February or within a 60 day time frame of the report being filed by the examiner. If the report is provided after the 15th of December, Caesars would then be at risk of default of the deal with the lenders.
Davis was appointed by the federal judge who was over the bankruptcy case in Chicago back in March. Davis was to examine the disputes and transactions of the claims by the creditor against Caesars and Caesars Entertainment Corp, the parent company.
Caesars believes the report will help them negotiate the long battle they have faced legally with the middle-tier noteholders. The same investors sued Caesars parent company located in Delaware and New York filing a claim that the pre-bankruptcy actions were designed to create the best Caesars that would have the ability to hold properties that are profitable and a bad Caesars would be created to wipe out the debt as it is placed under bankruptcy filing.