Elliott secured Caesars bankruptcy date agreement to trigger CDS payout
Max Frumes · Max Frumes and Sujeet Indap –Inside the Sausage Factory of the Caesar's Restructuring (Capital Allocators, EP.209) · Aug 16, 2021 · at 29:57
Financial journalist Max Frumes details how distressed debt investor Dave Miller of Elliott Management leveraged first-lien debt holdings during the Caesars restructuring negotiations with Apollo.
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“And he had been running very tough negotiation with Apollo and struck a very, very tough deal because he knew that Apollo needed an ally really badly. And so he got all sorts of goodies, including a convertible preferred security, as well as one of these well-known secrets in the industry, getting an agreement from Apollo to file for bankruptcy on a certain date so that his CDS position would pay off. Where he'd taken up a CDS position that Caesars was going to file in the first half of 2015, even though they had enough liquidity to make it beyond that.”
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