Caesars' Final Big Law Bankruptcy Bill Tops $160M
Caesars Entertainment Operating Co., one of America's biggest gaming companies, will pay more than $160 million to a half-dozen Am Law 100 firms for their services during its nearly three-year stay in Chapter 11 that concluded in October.
December 06, 2017 at 04:33 PM
3 minute read
In bankruptcy, the house always pays.
Caesars Entertainment Operating Co., one of America's biggest gaming companies, will pay more than $160 million to a half-dozen Am Law 100 firms for their services during its nearly three-year stay in Chapter 11 that ended in October.
The final bills, made available in a summary court filing Tuesday, still require approval from U.S. Bankruptcy Judge Benjamin Goldgar of the Northern District of Illinois. The payments to outside firms have slowed within the past year as the bankruptcy drew to a close, as previously noted by The American Lawyer.
The biggest winner in the bankruptcy that shed roughly $10 billion in Caesars' corporate debt is Kirkland & Ellis, which billed for $76.9 million in fees in its role as lead counsel to the company. The firm's work was led by James Sprayregen and David Seligman and included former partner Paul Basta, who recently picked up his first role as co-chair of the bankruptcy practice at Paul, Weiss, Rifkind, Wharton & Garrison.
Winston & Strawn, which last year wrapped up its work as legal counsel for examiner Richard Davis, billed a total of $30.6 million. Davis, a former Weil, Gotshal & Manges partner and member of the Watergate Special Prosecution, was investigating whether the parent company of Caesars stripped the operating company of profitable assets before it filed for bankruptcy.
That report said Caesars could be liable for up to $5 billion in damages for the reshuffling, although a deal was struck to avoid litigation on that front. Proskauer Rose billed $28.7 million in legal fees representing a committee of unsecured creditors. Jones Day billed another $25.1 million for its work on behalf of a group of second-lien junior bondholders.
Paul Hastings and DLA Piper also played roles in the Chapter 11 case. Paul Hastings billed about $284,000 for its work as special conflicts counsel to Caesars. And DLA Piper billed roughly $180,000 for its work in 2015 as special conflicts counsel to the debtor.
The bankruptcy by Caesars was the result of debt piled onto the gaming company by a $31 billion leveraged buyout by Apollo Global Management LP and TPG Capital LP of what was then Harrah's Entertainment. The deal, announced in December 2006, closed in January 2008.
In the end, those owners gave up most of their stake in Caesars, which was valued at $950 million. Creditors of Caesars owned about 70 percent of the company as it emerged from bankruptcy under a plan agreed upon in September.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All![Kirkland Is Entering a New Market. Will Its Rates Get a Warm Welcome? Kirkland Is Entering a New Market. Will Its Rates Get a Warm Welcome?](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/1e/65/798da04243c0a9fd527eba401a3a/kirkland-ellis-sign-2-767x633-2.jpg)
Kirkland Is Entering a New Market. Will Its Rates Get a Warm Welcome?
5 minute read![Senior Associates' Billing Rates See The Biggest Jump Senior Associates' Billing Rates See The Biggest Jump](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/83/d6/4bb2e2ba4bf280c893ff351590ad/business-growth-767x633-6.jpg)
![Strategic Pricing: Setting the Billable Hour at the Intersection of Psychology, Feedback and Growth Strategic Pricing: Setting the Billable Hour at the Intersection of Psychology, Feedback and Growth](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/65/61/ad37c110460ba0f936a0ca54611f/price-options-767x633-1.jpg)
Strategic Pricing: Setting the Billable Hour at the Intersection of Psychology, Feedback and Growth
Trending Stories
- 1States Accuse Trump of Thwarting Court's Funding Restoration Order
- 2Microsoft Becomes Latest Tech Company to Face Claims of Stealing Marketing Commissions From Influencers
- 3Coral Gables Attorney Busted for Stalking Lawyer
- 4Trump's DOJ Delays Releasing Jan. 6 FBI Agents List Under Consent Order
- 5Securities Report Says That 2024 Settlements Passed a Total of $5.2B
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250