I can't say that I am surprised to hear the news that Caesars palace in Vegas is being forced into a chapter 11 filing by it's creditors. I had heard rumors that things were not good in Vegas from many of the snow bird condo owners. If they do not have a condo in Florida they have it in Vegas. The prices of the Condo real estate was dropping like a lead balloon and jobs were tightening up.I have been hearing all sorts of horror stories from these owners trying to dump their sinking investments. Caesars laid off quite a few people a few years back, and all the great building jobs were drying up. Things have changed, more states have gambling now. I know here in New York we have more Indian casinos then ever. I can't say I am surprised to hear that such a large part of the Vegas strip might be going to take a big hit. Granted they do still have a serious convention industry and they have launched a very aggressive advertising campaign for tourism. Is Caesars just one of those places that might be to big to fail? What do you think is the jewel in the desert going to be a ghost town?
That is the funny thing about life. Nothing is forever. Big giants can come tumbling down when no one expects it. It is just unfortunate that the fall affects all those around. A job is important because it is reliable in ensuring that foods get on the table. No matter what happens, life goes on. That is the irony of life.
Wow! And the way most movies i know have really featured Caesar's Palace as the place to be, if one happens to be in Las Vegas, {Think like a man too...just watching it this moment]...The Last Vegas, Hangover 1...just to mention a few.} Plus late last year i received an invitation from one forum of which am an ardent participator in, to join them for holiday celebrations at Las Vegas and the hosting hotel was Caesar's Palace...true what Muthoni says, 'nothing is forever!'
I wish I had a crystal ball; however in lieu of one, I'll simply go by what I saw recently in Atlantic City. The "Vegas on the east coast" is a skeleton, a shadow of its former self. Partly a victim of the changing economy, as well as the proliferation of legalized gambling in neighboring states. However, in my opinion, the coup de grace has got to be the legalization of internet gambling in New Jersey. As for what caused Caesar's in Vegas to file for bankruptcy, I can only imagine.
Well, sometimes you gotta cut off things in order to not get yourself in debt you cannot recover. I'm sad to hear that, Caesars Palace got to a point where they have to be shut down by their creditors. It's been a symbolic place of vegas as well.
Not so sure that it will actually shut down, Chapter 11 is a type of bankruptcy where you are offered the chance to re-organize the business. the problem with chapter 11 is that some of the other business's that have contracts can be left out in the cold as the new business's after Chapter 11 reorganization get a sweeter deal. If things are really bad and Caesars in insolvent the creditors will end up with the newly reorganized business and the former owners will get nothing. Pretty scary to think of creditors running a Vegas franchise when you consider it that way, we know credit by it's nature is designed to make money for themselves not customers.
They need to seriously re-organize everything then. Did they make any speculations in what direction they want to go?
Las Vegas is losing a lot of Asian clients to Macau. Macau now has twice the amount of gambling as Las Vegas. Also the new patroit type laws are not encouraging to big rollers to travel to Las Vegas. As a rich Chinese businessman or Arab prince would you want to go to a place where you might end up on a no fly list ? Many foreign banks are now refusing to take American customers, they are worried they will get in trouble with the IRS and have their American assets siezed. For the same reason a lot of countries no longer want to do business with American companies. The US government can jump in anytime and disrupt the trades. China and Russia to destroy America, just have to sit back and watch. The American government is doing a far better job of destroying USA then Russia or China ever could have done.
Opps looks like someone at Caesars might be going straight to jail for a violation of the federal Trust Indenture Act of 1939. That's what you get for trying to shaft the little guy, this time someone noticed. No surprise it was from NY (wonder why that could be?) I can't say that I am surprised, from the get go this sounded like a shell game, evidently the fed agrees. Still only getting $598 million for $5.24 BILLION of debt is a shaft all by itself. Court intervention or not. Despite all that Caesars still get to run the casinos.
It is really sad that such a place has to be shut down and a lot of people are having real bad time taking care of the place. I hope there would be a better solution to this problem and nothing major happens.
