Caesars Judge Tells Apollo, TPG Leaders to Release Wealth Databy
Bonderman, Rowan, Sambur must turn over details to creditors
Dispute is part of bondholder fight in Caesars bankruptcy
Top executives of Apollo Global Management LLC and TPG Capital must give bondholders details about their personal wealth, the judge overseeing the bankruptcy of Caesars Entertainment Operating Co. said Wednesday.
Apollo co-founder Marc Rowan, company principal David Sambur and TPG co-founder David Bonderman must provide the information to a committee of dissident creditors who are fighting a reorganization proposal for Caesars, U.S. Bankruptcy Judge A. Benjamin Goldgar ruled. That plan would release the men from any legal liability related to the Las Vegas-based gambling company’s bankruptcy. The bondholders say the men shouldn’t be shielded from lawsuits related to the bankruptcy.
Rowan, Sambur and billionaire Bonderman all objected to being forced to provide the information, arguing in court papers that it was an invasion of their privacy and designed to harass them.
Bondholders are suing Caesars’ non-bankrupt parent, Caesars Entertainment Corp., claiming the company, at the behest of New York-based Apollo and Fort Worth, Texas-based TPG, abandoned a repayment guarantee and shifted assets out of the the operating unit that could have been used to pay its debts. The bondholders maintain that the men and other TPG and Apollo executives should be held responsible for their roles in the operating company’s problems.
A court-appointed examiner found that creditors had a good chance of winning lawsuits targeting TPG and Apollo executives behind the disputed CEOC transactions.
The bankruptcy is In re Caesars Entertainment Operating Co. Inc., 15-01145, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).