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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]
