Private equity and bankruptcy

The Ch 11 of Caesars Entertainment Operating Company Inc has raised questions regarding the conduct of private equity firms prior to its bankruptcy filing in echoes of the current debate in Australia regarding the collapse of Dick Smith following the public sale of the business by listing on the ASX by its private equity owners.

The Caesars examiner has noted that there may be claims for breaches of fiduciary duty and fraudulent transfers worth several US$ Billion. For a summary of the issues see this Reuters report: Reuters article

The Examiner’s report can be found here: Examiner’s report

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