Ex-Caesars workers sue to protect $27M in deferred pay

Josh Kosman

New York Post

25th February 2016

Former Caesars Entertainment workers have asked a New Jersey judge to protect $27 million in deferred compensation. The casino’s owners are trying to get out from under the deferred compensation costs by keeping the plan’s assets in a bankrupt unit instead of transferring them to a newly created company, the suit claims. The retirees could get left with payouts totaling as little as 10 cents on the dollar of what they are due if the plan’s assets stay in the bankrupt unit, sources told The Post.

Caesars “has sought to disclaim liabilities through complex corporate transactions and through complex bankruptcy proceedings,” the complaint says. The workers, who filed the suit last week in Newark federal court, were employees of Hilton’s former casino division, Park Place Entertainment, which was eventually acquired by Caesars. The complaint against the plan’s administrators seeks to clarify their “rights to past and future benefits under the terms of the plans.

” Caesars’ owners, Apollo Global Management and TPG Capital, transferred assets to several newly created companies shortly before putting Caesars’ biggest operating unit into Chapter 11 in January 2015. The bankruptcy is hitting a critical stage with an independent examiner expected next week to release findings of his investigation into whether the transfers were improper..

 

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