Caesars creditors get okay to study hedge fund execs’ personal finances

The hedge fund execs that control casino operator Caesars Entertainment have been ordered to let Caesars creditors have a peek at their personal bank statements.

Last week, the Chicago judge handling the bankruptcy of Caesars’ main division expressed frustration over his inability to get clarity on exactly how much money Apollo Global Management and TPG Capital were willing to contribute to bridge the gap between what Caesars creditors are seeking and what Caesars is offering.

Caesars Entertainment Operating Co (CEOC) filed for Chapter 11 bankruptcy protection in January 2015, citing $18.4b in debts. Caesars has proposed a restructuring that would halve that debt, with most of the vanished money coming out of junior creditors’ pockets.

Junior creditors have sued CEOC’s parent company over what they claim were fraudulent pre-bankruptcy asset transfers and scrapping of debt guarantees intended to protect Caesars’ more valuable holdings at the creditors’ expense.