Executives at Apollo Global Management and TPG, the owners of Caesars Entertainment Corp., may contribute to a proposed settlement of legal claims tied to Caesars’ bankrupt operating unit, The Wall Street Journal reported yesterday. James Millstein said in bankruptcy court that Apollo co-founder Marc Rowan, Apollo partner David Sambur and TPG co-founder David Bonderman “may make a contribution” to a broader settlement offer by Caesars to resolve allegations that the casino operator and its private-equity owners essentially looted the operating unit of valuable assets for their benefit, harming the now-bankrupt unit’s creditors. Caesars and its owners have denied wrongdoing. Millstein is a turnaround expert who is advising the Caesars unit, known as Caesars Entertainment Operating Co. (CEOC), in its chapter 11 restructuring. He said he doesn’t know whether any potential contribution from the private-equity officials would come through their personal assets or in “their capacity as directors entitled to indemnification from their employers.”
