Investigator Raises Questions Over Private Equity Giant’s Tactics In Bankruptcy Case

Flickr/Gourab Majumder

Private equity real estate behemoth Apollo’s hardball tactics are being called into question by an investigator’s report on the bankruptcy filing of Caesars Entertainment, one of Apollo’s holdings.

Apollo’s legal and financial moves during the bankruptcy—like moving its best assets away from the unit that filed for Chapter 11 protection—are part of a long history of similar tactics by the firm.

But this time the firm may have gone too far, according to bankruptcy examiner Richard Davis, who found that Caesars’ creditors could claim damages up to $5.1B from Apollo and other shareholders for transferring assets away from the bankrupt unit.

Apollo, for its part said it “acted appropriately and in good faith” to help the bankrupt Caesars unit “strengthen its capital structure. [WSJ]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Gencom-Led Partnership Acquires InterContinental Hotel In Downtown Miami

TPG, ACORE Raise Billions For Opportunistic CRE Funds

Newmark Cuts Earnings Outlook Despite Record Third Quarter

Battered Mortgage REIT Suspends Dividend To Preserve Cash

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Weil Gotshal Wind-Down Leaves 830K SF Hole In America's Office Market

Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss

Tyko Capital Sets New Record For Florida's Largest Construction Loan

Office Recovery Moving Faster Than Expected, CoStar Finds

How Microsoft, Coca-Cola And Amazon Are Adapting Their Offices For AI Age

CoStar To Acquire Aerial Imagery Company For $730M

BXP Execs See Better Returns In Building Offices Than Buying Them