Max Frumes - The Caesars Palace Coup

This podcast episode interviews Max Frumes, co-author of "The Caesars Palace Coup," about the book's content and the Caesars Palace leveraged buyout. The discussion covers the background of Gary Loveman, the transformation of the casino industry, the role of Drexel Burnham Lambert, and the complexities of the deal's financing and structure (OpCo/PropCo). Frumes details the use of CMBS financing, the concept of fraudulent conveyance, and the political lobbying efforts surrounding the Trust Indenture Act of 1939. The episode concludes with a discussion of the various winners and losers in the Caesars deal, highlighting Appaloosa's significant returns and the ethical implications of using credit default swaps (CDS) to influence bankruptcy decisions. Listeners gain insights into high-yield debt, distressed debt investing, and the intricacies of large-scale financial transactions.