China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

Continue Reading


Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

Continue Reading


China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

Continue Reading


Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

Continue Reading

Categorized | Financial

Caesars’ backers fight wealth disclosure

Posted on September 19, 2016

Caesar's Palace sits on The Strip in Las Vegas, Nevada, U.S., on Friday, Nov. 5, 2010. HarrahÕs Entertainment Inc., the worldÕs biggest casino company, boosted its planned initial public offering to raise as much as $610.9 million and will change its name to Caesars Entertainment Corp. Photographer: Jacob Kepler/Bloomberg©Bloomberg

Creditors of Caesars Entertainment who oppose the bankrupt casino group’s $18bn restructuring are trying to force its billionaire private equity backers to disclose their private wealth.

Last week, US bankruptcy court judge Benjamin Goldgar ruled in favour of a group of junior bondholders who are demanding the personal financial details of Apollo co-founder Marc Rowan and TPG co-founder David Bonderman — both of whom are multibillionaires.

    The creditors say they are entitled to this information to ensure the individuals could afford any future judgment against them — although it is rare for individuals to have to contribute to settlements for corporate wrongdoing.

    Apollo and TPG acquired Caesars in a $31bn leveraged buyout in 2008 but the weight of the debt involved led the casino group’s operating unit to file for bankruptcy early last year. Creditors have since claimed that the two private equity groups were guilty of asset stripping and breach of fiduciary duty, and Judge Goldgar ruled in late August that their lawsuits against the Caesars parent company can move forward.

    An independent inquiry has suggested the value of claims could reach $5bn.

    If Mr Rowan and Mr Bonderman fail to win a legal challenge against the disclosure ruling, they and two other executives from the firms, along with two members of Caesars’ management, will have to start producing bank accounts and tax forms outlining their personal fortunes, later this week.

    Marc Kasowitz, the lawyer representing TPG, said: “We disagree with the Judge’s decision, which permits an unwarranted invasion into personal privacy and is contrary to well-established law. We are pursuing the appropriate avenues for judicial review.”

    Apollo said in its court papers: “To illustrate the egregious overreaching involved here, the subpoenas by their terms would require the Apollo individuals to produce all receipts and instruction manuals for their children’s toys. The only possible conclusion is that the [dissident bondholders] crafted the subpoenas to harass their target and impose maximum burden.”

    Both private equity firms are in favour of a restructuring plan whereby Caesars’ parent company would contribute $4bn worth of cash and securities to a reorganised Caesars Entertainment. This plan also involves dissident creditors receiving only 40 to 50 cents for each dollar they believe they are owed. If the plan is approved as currently structured, the private equity firms and their partners would also be released from all liability claims.

    Inside Business

    Caesars Entertainment bankruptcy shines light on law firm

    CIE’s parent, Caesars Entertainment, is undergoing restructuring

    Examiner’s report raises questions about role of advisers

    However, this trade-off has been challenged by Judge Goldgar, who questioned the fairness of releasing the firms and partners from liability if they are not personally contributing to the settlement.

    According to the official committee of the junior bondholders, the Caesars directors “have refused to produce a single document showing their financial resources or ability to satisfy claims for billions of dollars that would have been released under the [restructuring] plan without any payment by any [Caesars director]”.

    Judge Goldgar agreed with these concerns, saying in court that the private equity group executives “would have to pony up the paper [financial info].”

    Apollo and TPG have claimed there is no reason to doubt their ability to fund any far-off judgment, citing their vast resources as well as insurance and indemnification provisions.

    Lawyers for the dissident creditors have agreed to exempt the private equity bosses’ family members from their data request.