Caesars Takes Aim at Law Aiding Creditors: Amendment to the law could undermine lawsuits against Caesars brought by bondholders
Again, the Indenture Act of 1939 is intended to outline the contractual relationship between borrower and issuer. There is a reson we have bond indentures. The fact that CZR attempted to shove/embed a change to the Indenture Act into the Highway Bill means only one thing - CZR knows they are absolutely wrong and have no basis from stripping the assets away from the 2nd priority senior note holders and other creditors.
Frissora should just voluntarily place CZR into BK and work out the settlement as opposed to letting the company bleed slowly.
Why do they need to wipe out the equity? I always felt that the purpose of BK was to protect GT against Apple. In this case, the BK filing pushed Apple to forgo the debt and allow GT / AAPL to separate.
Since this hurdle has been achieved, why do they need to wipe out the equity?
Given the not-surprising losses due to bankrupt in-fighting, I think the safest and quickest way to resolve this fiasco is to voluntarily file BK for the entire enterprise - everyone should take a haircut not just the second priority seniors holders and below, but everyone including Apollo and other greedy first priority.
Otherwise, I agree with with the second seniors and fight this to the end! We should not be left holding the bag to the benefit of the first seniors! Again, this is not how an indenture is supposed to be interpreted - where you can change the goal posts as you see.