Some ex-Caesars workers lose retirement in bankruptcy
By Howard Stutz, Las Vegas Review-Journal
An undisclosed number of former Caesars Entertainment Corp. employees have lost their retirement income because of the casino company’s bankruptcy restructuring of its largest operating division.
The retired employees were notified by the company through a form letter/memorandum that was sent Jan. 15, the same day Caesars Entertainment Operating Co. filed a pre-packaged Chapter 11 bankruptcy plan in Chicago that is expected to eliminate $10 billion of debt.
The employees were told the company would no longer make payments under a Supplemental Employee Retirement Plan (SERP).
Caesars is the parent company of Harrah’s Lake Tahoe and Harveys.
“Instead of receiving notification of my direct deposit, I received this letter,” said Betty Wilson, a retired certified public accountant who worked for Caesars World. Caesars World is one of the former entities acquired by then-Harrah’s Entertainment in the company’s 2005 buyout of Caesars Entertainment for $9 billion.
A Caesars official familiar with the matter but not authorized to speak on behalf of the company said there are several similar retirement plans offered by other companies that were subsequently acquired by Harrah’s/Caesars.
Did Bain Capital buy Caesars?
I heard they were too busy building “binders full of women” to be interested in purchasing Caesars.
Slimy bit of business. Bastages!
This has been a corporate strategy for many years and now that very few companies even offer a retirement plan anymore, people have to wonder what the future holds for many as most of the entitlement programs and even paid into Social Security are nearly bankrupt now and will likely not last another two decades without massive changes. The government systems are adding people at a rate that can’t be sustained and is on a course for massive future failures.
unclear who gets taken to the cleaners