| CHICAGO, Sept 14
CHICAGO, Sept 14 Billionaire investors Marc
Rowan and David Bonderman are among Caesars Entertainment Corp
directors who must disclose details of their wealth to
creditors of the casino holding company's bankrupt subsidiary, a
U.S. judge said on Wednesday.
Junior creditors of Caesars Entertainment Operating Co Inc
(CEOC) convinced the court on Wednesday to force six of the
parent's directors to prove they can contribute to CEOC's
reorganization plan in exchange for releases from allegations of
"These folks are going to have to pony up the paper," U.S.
Bankruptcy Judge Benjamin Goldgar said at a hearing in Chicago
CEOC filed an $18 billion bankruptcy in January 2015.
Junior creditors accuse directors of Caesars and its private
equity sponsors Apollo Global Management LLC and TPG
Capital of orchestrating a plan to strip CEOC of "crown
jewels" such as the Linq Hotel & Casino complex in Las Vegas
prior to its bankruptcy.
While Caesars, Apollo and TPG have denied the allegations, a
court-appointed independent examiner found in March that the
three could be on the hook for up to $5 billion.
Caesars has pledged $4 billion to a CEOC reorganization plan
that junior creditors refuse to support, arguing in part that
individual directors should contribute if they want releases
In a motion filed on Aug. 31, the creditors demanded
financial information from Caesars' directors Rowan and David
Sambur of Apollo and Bonderman and Kelvin Davis of TPG, as well
as former Caesars' executives Eric Hession and Gary Loveman, who
remains on the board.
Rowan and Sambur complained in a court filing last week that
the creditors were demanding "a staggering array" of evidence of
their personal financial affairs, including the "receipts and
instruction manuals for their children's toys."
Goldgar agreed on Wednesday that the requests should be
whittled down to something more "reasonable" before saying he
would approve a revised list of creditor demands.
Rowan and Sambur have already offered to contribute $250
million to the CEOC reorganization plan, which would give
creditors stock in a new group to be created through a merger
between Caesars and another affiliate, Caesars Acquisition Co
That merger "reassembles all of the relevant assets back
into a consolidated enterprise in a manner that would
significantly alleviate the alleged harm" at the heart of junior
creditors' allegations, Caesars said in a court filing this
(Editing by Tom Hals and Matthew Lewis)