Caesars Entertainment to Resume Some Deferred Compensation Following Bankruptcy Scandal

No Investigation, Spokesman Says

The confusing situation has led to many contradictory reports about exactly how and why the deferred compensation plans were being funded. In Friday’s statement, Cohen disputed reports that the US attorney for New Jersey was looking into the situation, and that a private equity owner was funding the payments.

“Caesars did not transfer assets supporting the deferred compensation to CEOC and we are not aware of any government investigation into our deferred compensation program,” he stated.

Several notable employees are owed money as part of the deferred compensation plans, including Chairman Gary Loveman and Chief Financial Officer Eric Hession. One of the most significant sums belongs to former Harrah’s Entertainment Chairman and CEO Phil Satre, who court documents say is owed nearly $6.7 million.

According to lawyers for Caesars, the company is hamstrung by bankruptcy law, which requires them to separate supplemental retirement plans with other unsecured creditors.

Through the bankruptcy, the gaming giant is hoping to convert its operating unit into a publicly traded real estate investment trust. By doing so, it hopes to restructure its debt, bringing the $18.4 billion owed to creditors down to a more manageable $8.6 billion.