The affiliates acquired properties such as the Linq Hotel and Casino in Las Vegas, which includes the world's largest observation wheel at 550 feet, and the nearby Planet Hollywood Resort & Casino.

The private equity firms and the parent company have said these deals were aimed at helping Caesars flourish by providing cash to CEOC. They have denied wrongdoing and dispute the examiner's findings.

But Davis said the internal communications show the strategy explicitly contemplated how the private equity firms could emerge winners if Caesars filed for Chapter 11. Premier assets were acquired at less than fair value and placed beyond the reach of creditors, who were stuck seeking repayment from a hollowed-out CEOC, according to Davis.

Davis said the memo showed that the private equity firms feared losing their entire investment and were trying "to improve their position vis à vis CEOC's creditors in the event of a restructuring."

Davis concluded the private equity firms and the Caesars parent faced up to $5.1 billion in damages for the asset transfers. Creditors, led by deep-pocketed and aggressive hedge funds such as Appaloosa Management called it "looting," and were pursuing $13 billion in damages in several courts.

Appaloosa and its allied creditors agreed to drop those lawsuits as part of last week's deal. The settlement essentially puts the family of hotels and casinos back under one roof by merging the affiliates that Rowan created, including Caesars Acquisition Corp, with the Caesars parent.

The deal is subject to approval from the U.S. Bankruptcy Court in Chicago. One small hedge fund still opposes the proposed deal.

This article was provided by Reuters.

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