vpFREE2 Forums

Bankruptcy a financial tool?

#1

I’m not so sure Iwe should be so worried about all of these casinos

filing bankruptcy. Even the threat of going belly up might get some

favorable treatment from creditors. Operating on a tight budget requires

strong management to stay alive. So , mismanaged or not, it might be

time. Take a run at the creditors and wipe them out in bankruptcy. Of

course the big creditors are protected. Why not stiff the little suppliers

for a few hundred million. Back again, stronger than before.

The icing on the cake, the legal fees help a

lot of lawyers.

Just one guys thought…Jeep

#2

I have a feeling that I’m feeding a troll here with the typical “screw the little guy” attitude, but . . .

The answer is - it depends. In the case of Caesars they are doing terribly on an operational basis (or pro forma) so yes, some suppliers will get screwed.

However, a lot of their debt is from real estate notes and holdings. The investors behind those are unlikely to let those go quickly. So a breakup of the company, almost literally on a property-by-property, geographic basis, would most likely ensue. There would also be the case of the online side of Caesars, the CIE portion. That has direct ties to both Nevada and New Jersey, even on a licensing basis (NJ requires each online gaming license to be associated with a brick and mortar casino within the state). So that would add an additional layer of confusion since those licenses may ( or may not) appreciate over time.

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On Jul 25, 2014, at 9:48 AM, “whiteje…@…com [vpFREE]” <vpF…@…com> wrote:

I’m not so sure Iwe should be so worried about all of these casinos

filing bankruptcy. Even the threat of going belly up might get some

favorable treatment from creditors. Operating on a tight budget requires

strong management to stay alive. So , mismanaged or not, it might be

time. Take a run at the creditors and wipe them out in bankruptcy. Of

course the big creditors are protected. Why not stiff the little suppliers

for a few hundred million. Back again, stronger than before.

The icing on the cake, the legal fees help a

lot of lawyers.

Just one guys thought…Jeep

#3

Good point about on line value of license. I never considered that.

In gaming or any other business, bankruptcy

can’t make sense when things are good. It’s not usually the end of the

world, except in liquidation. I just think we don’t need to feel sorry

for casinos. I feel sorry for us players who have endured the cutbacks

and watched our recreational pastime go to the dogs.

If I hurt your feelings by suggesting the “little” guys usually get screwed,

I’m sorry. I have heard, though, business guys recognizing bankruptcy

as a good business move. I do understand, most don’t want to be in

position to have file.

Jeep… ( lamb in lambs clothing )

#4

Understood and I retract my troll comment.

I think we are in agreement. Don’t confuse my analysis for sympathy - I don’t care much for casino companies either. The fact that Gary Loveman has a job is astonishing to me. I think that a CET failure (which is inevitable) would add confusion to the market sector but would ultimately be a good thing.

I’m smarter than the average bear when it comes to online gaming and I work in the sector (that’s all I’m going to say about that). Here’s the lynchpin - if NJ can pass a bill through their legislature that allows international players to use their online sites, then NJ wins all the marbles - the battle for online gaming would be over and CET would be a very strong beneficiary of that. Anything short of that and (1) NJ will never attain reasonable gaming revenue and (2) CET will fail as a company.

Mark my words. You read it here first.

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On Jul 25, 2014, at 10:41 AM, “whiteje…@…com [vpFREE]” <vpF…@…com> wrote:

Good point about on line value of license. I never considered that.

In gaming or any other business, bankruptcy

can’t make sense when things are good. It’s not usually the end of the

world, except in liquidation. I just think we don’t need to feel sorry

for casinos. I feel sorry for us players who have endured the cutbacks

and watched our recreational pastime go to the dogs.

If I hurt your feelings by suggesting the “little” guys usually get screwed,

I’m sorry. I have heard, though, business guys recognizing bankruptcy

as a good business move. I do understand, most don’t want to be in

position to have file.

Jeep… ( lamb in lambs clothing )

#5

Didn’t think n.j. could trump federal law on off-shore on-line gambling.

#6

Nope, read my message again. NJ is trying to open their gambling web sites to international customers. So there really isn’t a federal law that bars international players “coming” here (virtually). The fed Wireless Act is about US citizens using overseas sites - but there’s nothing about overseas citizens using US sites.

If NJ succeeds in doing that then they will have won and potentially helped CET quite a bit. If they don’t, then nothing but negative things will happen.

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On Jul 25, 2014, at 10:09 PM, “haa…@…com [vpFREE]” <vpF…@…com> wrote:

Didn’t think n.j. could trump federal law on off-shore on-line gambling.