Don't the investors get to decide his contract? I would think so, but I don't really know much about how such things are decided.

Lee

Corporations have board of directors and they negotiate executive contracts. Actually, they probably have an executive compensation committee that does such things.

Short answer: Caesars' obligations in Nevada to cash its chips in are close to 100%. There is not likely to be any real risk for outstanding player chips.

HOWEVER, and 48 people from Caesars, (and I), just heard first hand from the head of FinCEN, that her agency has a concern about 'chip walking"*. So there is a chance that a Caesars in financial straits MIGHT try and avoid cashing any chips it can point to as prospective money-laundering by "chip walking".

Best practice, cash in your Caesars chips before you leave the property where you got them. Alternatively, get a check for any large amounts and cash it ASAP, if you are worried.

The truth is that casino chip obligations are "legal" only for gaming purposes; chips are not meant for anyone to hold value or hide assets, use in trade for any non-gaming purpose or really, even taking a "walk".

(*When someone in federal law enforcement uses a short-hand term for not cashing in your chips, i.e. "chip walkng", it is noteworthy. I expect to hear more from FinCEN/IRS speakers later today at this Bank Secrecy seminar on this topic.)

"Chip Walking"? By that do you mean walking out of the casino with chips? I've never heard of that being illegal - or even improper! Although I do know that only the person who won or bought the chips in the first place is the one that the casino wants cashing them in.

Not a problem for low level chips, but I do remember the story of Nolan not being able to cash out a flag at Bellagio (can't remember if he ever got his money or not.)

Please do keep us updated on how concerned we should all be regarding this. Thank you.

I also know that CET properties in Vegas aren't honoring the old slot tokens. I tried cashing out a few last year and was denied. Not a lot - maybe 20 or 30 I'ld picked up in the antiques business. But was told at more than one property that they are no longer valid.

Lee

Ceasars has been insolvent for the better part of a decade, the lending documents just suck so the owners have no recourse to actually do much about it.

None of this is about the long-term health of the company, they have to restructure at some point and its probably better to do it sooner rather than later from an operating standpoint.

This is all about how much value the equity investors can move to entities like Ceasar Acquisition Company that aren't loaded down by debt so that the equity investors can have a claim on those assets. They're doing way better than I expected, they might get out at close to 100 cents on the dollar while lenders take modest to major haircuts (depending on seniority)

Debt markets are hot right now, investors are greedy and not focusing on the terms of the debt, not a recipe for success when dealing with a smart and aggressive equity owner.

Story just came out that they are closing the Showboat in Atlantic City.
http://www.pressofatlanticcity.com/n...9bb2963f4.html

Hmmmm. I think that's misleading. It seems to be standard that when a company is struggling, try to borrow as much as you can, from as many places as possible. Less likely to be forced into bankruptcy when creditors will only get pennies on the dollar.

you can only borrow money if people will lend it to you...if people thought they were going to lose money they would not have given caesars the loan.

High yield bonds have been super populair lately. Not saying what you are saying isn't true, but there is a bit of a high yield bonds craze, I don't think the market is being super rational about them atm.

Crazy that they are closing a profitable casino.

zero

Caesar's in the news again.

http://www.bloomberg.com/news/2014-1...tml?cmpid=yhoo

Time to sell off some assets like the WSOP? The rest of the Atlantic City casinos?

Maybe Adelson wants WSOP?

Setting up for bankruptcy.

http://www.bloomberg.com/news/2014-1...ankruptcy.html

So basicly they are going to file for bankruptcy, screw a bunch of low-level creditors and suppliers, and renegotiated with the high-level creditors to restructure their debt? Or am I understanding it wrong?


This surely has to be the beginning of the end.

Is there any chance that money on deposit with wsop.com is unsafe?

Thanks

And yet their stock jumps 35% on the announcement they're declaring a 'controlled' bankruptcy. I will never understand the capital markets.

(no, ur money on wsop is fine; so long as they're complying with regs)

Imagine your doctor telling you he has to amputate your foot in a couple month. The date gets closer and you start to get used to the fact that your foot will be gone soon.

A couple days before your scheduled surgery, the doctor tells you they can save the foot and you "only" loose 3 toes. That news is going to make you pretty happy even though it's gonna be super painful of course.

That's how the capital market sees the situation right now.

best analogy ever.

I think a combination of not as bad of news coupled with a bunch of short sellers getting squeezed created a dramatic increase in the stock price.

or the fact that one of the major online poker operator in the us is trying to screw debtholders ... the topic isn't btw new and came up several times, but nvg drops such stories fast


over the last year(s) they sold the good stuff (like interactive) to subfirms. or they started new companies and sold the good assets to them (like one or two casinos). and btw: caesars is making good profits with social gaming and it seems, that if there's a 'real' bankruptcy, they might walk away with this trick and debtholders can pick up the scraps.

this whole story is a complete joke, the got several new debts to pay older ones. they also desperately sold stuff like the golf course in macau to pay debts.

and there's no end in sight ... if i'm not wrong, the had a lost of more than 900 million for the 3rd quarter ... so loveman is just lying, when he says there's a chance to somehow go back on track. they just try to collect their paychecks (and of course the bonus at the end) and bring more +EV assets to new caesars branded companies, that maybe not will be liquidated.

you all can hate PS and believe in this bad actors gibberish, but fact is, PS could have rescued the ACC, but wasn't allowed. caesars with tons of debt was allowed to buy the property and just to close it.

sry, my rant lacks of details and accuracy , but i just woke up ... i still think, i made my point

Terrible analogy. They're not losing any toes.

If this plan works, it gives CET a chance to potentially become profitable. That's why the stock is going up.

Meanwhile, Resorts World breaks new ground in Vegas and LVS can't find a customer with a 10 foot pole. Is this the smell of freshly laundered money?