Best The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street By Max Frumes

Best The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street By Max Frumes

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The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street-Max Frumes

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It was the most brutal corporate restructuring in Wall Street history. The 2015 bankruptcy brawl for the storied casino giant, Caesars Entertainment, pitted brilliant and ruthless private equity legends against the world's most relentless hedge fund wizards. In the tradition of Barbarians at the Gate and The Big Short comes the riveting, multi-dimensional poker game between private equity firms and distressed debt hedge funds that played out from the Vegas Strip to Manhattan boardrooms to Chicago courthouses and even, for a moment, the halls of the United States Congress. On one side: Apollo Global Management and TPG Capital. On the other: the likes of Elliott Management, Oaktree Capital, and Appaloosa Management.The Caesars bankruptcy put a twist on the old-fashioned casino heist. Through a $27 billion leveraged buyout and a dizzying string of financial engineering transactions, Apollo and TPG—in the midst of the post-Great Recession slump—had seemingly snatched every prime asset of the company from creditors, with the notable exception of Caesars Palace. But Caesars’ hedge fund lenders and bondholders had scooped up the company’s paper for nickels and dimes. And with their own armies of lawyers and bankers, they were ready to do everything necessary to take back what they believed was theirs—if they could just stop their own infighting. These modern financiers now dominate the scene in Corporate America as their fight-to-the-death mentality continues to shock workers, politicians, and broader society—and even each other. In The Caesars Palace Coup, financial journalists Max Frumes and Sujeet Indap illuminate the brutal tactics of distressed debt mavens—vultures, as they are condemned—in the sale and purchase of even the biggest companies in the world with billions of dollars hanging in the balance.

Book The Caesars Palace Coup: How a Billionaire Brawl Over the Famous Casino Exposed the Power and Greed of Wall Street Review :



I was pulled in by the excellend prologue, and didn't stop there. The story told here is detailed, incredibly well researched, well written, and surprising. The authors clearly are fabulous journalists and have sourced some exceptional aspects of this back-room dealmaking story. I highly recommend this book to anyone interested in finance and financial markets, and business in general. On par with Michael Lewis's many books on similar subject matter but with its own style of course. I haven't finished the book but have read enough to be confident in my opinion and rating. I'm learning a lot and greatly enjoying this story!
“The Caesars Palace Coup” is a great story. It is, unfortunately, inundated with more facts, financial terms and data, and minutiae than a set of encyclopedias. These two first-time authors spent four years researching and interviewing the participants in this historic brawl, and the book shows it. This is a book for people who like Wall Street; who are interested in hedge funds and their tricky, greedy managers and directors; and who appreciate the twin driving forces behind Las Vegas: money and greed.Caesars Palace is the result of several takeovers and mergers of different casino operations, such that it became the biggest casino operator not only in Las Vegas, but in the United States, with different casinos in different states. The lure of money, and more money, drew the interest of hedge funds, many of whom never miss an opportunity to rape a vulnerable company. As Caesars had difficulty in the 2008-2010 time, like the rest of America, many hedge funds and banks and others rushed in, bought different Caesar’s financial instruments, and took control of the company. They then cut up various of its components (e.g., an operations company, a real estate owned company, an entertainment company, etc.), diced it with tons of new debt structured every possible way, and neglected to actually run the company with expertise.When the mismanagement reached critical levels in terms of income and debt servicing, the various debt holders started making problems, threatening involuntary bankruptcy, and caused an historic crisis. An involuntary bankruptcy was filed by one group; that was elevated to Caesar’s itself filing for Chapter 11 bankruptcy in Chicago. And that’s where the story mostly lies. The machinations of the various groups, the hundreds of directors, bankers, lawyers and casino employees, and the various strategies to secure victory, make a dense narrative. It is difficult to keep the various actors straight without the Cast of Characters beside the book as it is read.Ultimately, a few power players prevail, the debtors all accept the settlement, the greediest hedge funds are beaten mercilessly into submission, Caesar’s is released from bankruptcy, and this case becomes one of the premier case studies at the Harvard Business School for both re-structuring of corporate debt, and how not to slice a viable corporation into greed-based bonds, notes, loans, etc., as well as the appointment of unqualified directors. This is a good book for anyone who likes to read a balance sheet for fun.

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