It's not realistic to make these comparisons. Here's why:
1 - There have been very, very few bankruptcies that would compare to CET. There's not many companies that have been allowed 23B in debt, so it's going to be a bankruptcy on a grand scale. Most of the large magnitude bankruptcies have also involved some sort of Gov intervention (GM, Ford, etc) - that is unlikely to happen here.
2 - Airline miles are not redeemable for cash, while comp points are (among other things) so that would introduce you as a creditor. So not only is there debt, there's also liabilities (i.e. you, the comp holder). That definitely makes you a creditor.
3 - Most of the debt that CET has is real estate notes (and other lines of credit), most likely held by large hedge funds, massive pension funds, etc. The new holders of Caesars Growth are the same crowd, including George Soros. Do you really think all those companies are going to put themselves second so that you can get your free meal at Nobu first? C'mon . . . They will find a way.
On Tue, Apr 8, 2014 at 5:47 AM, baccarat_guy <baccarat_guy@me.com> wrote:
"But I would think that it puts comps into jeopardy - at bankruptcy youwould be a "credit holder" of CET.”
I highly doubt such a scenario. Look at all the (large) airlines that entered into bankruptcy. Frequent flyer miles were (almost) always protected; and that’s a very similar liability.
__._,_.___
| Reply via web post | Reply to sender | Reply to group | Start a New Topic | Messages in this topic (20) |
.
__,_._,___
