Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, August 5, 2014

Noteholders say Caesars fraudulently transferred gaming assets, (NASDAQ: CZR)

Caesars Entertainment Corp was sued by noteholders who said billions of dollars of assets were fraudulently transferred from the reach of creditors in what they said was preparation for a default on some of its $25 billion in debt. Wilmington Savings Fund Society, the noteholder representative, filed the lawsuit overnight in Delaware's Court of Chancery and seeks to unwind recent sales of major Las Vegas properties such as Octavius Tower by Caesars Entertainment Operating Co Inc.Caesars Entertainment has said it was preparing the CEOC unit for a stock market listing.Caesars Entertainment has said the asset transfers allowed CEOC to build a cash pile of more $3 billion while shedding its most capital-intensive projects.Noteholders said the moves were aimed at protecting key assets from the reach of creditors.

Caesars Entertainment Corporation, is a diversified casino-entertainment provider. Shares of CZR fell by 1.49% or $-0.21/share to $13.84. In the past year, the shares have traded as low as $13.90 and as high as $26.74. On average, 912328 shares of CZR exchange hands on a given day and today's volume is recorded at 143861.



Source