GGW founder 10.3 Million in debt to Steve Wynn, files bankruptcy

http://www.newser.com/story/163653/girls-gone-wild-files-for-bankruptcy.html

 

Why would a company be liable for gambling debt? It should go to Francis personally - not GGW. Along with the verdict on the slander lawesuit.

 

Depends on corp structure relative to Francis's personal judgement. Could be that GGW wants to restructure membership so that Francis doesn't own GGW and GGW can go on through a friendly affiliate

 

That newser article is terrible, it is trying to simplify something you can't simplify. The gist is this. Francis owed Wynn $2 million personally for gambling debts. When Wynn sued him, he ran his mouth and lost a defamation lawsuit, and owed Wynn that money personally. Francis put his companies in bankruptcy because Wynn came after the companies for the personal debt. Wynn alleged that instead of Francis paying himself wages, Francis was treating the companies and their bank accounts as his personal accounts and property. If you do that, you risk having a court declare that your corporations aren't the separate "persons" that the law normally treat them as, meaning Wynn could take corporate property to pay the debt. So now there's going to be a very public fight in bankruptcy court over whether Wynn can get at corporate assets.

No matter what happens though, Francis is still going to owe the money to Wynn

 

Thanks for clarifying

 

I think what is throwing folks off is the unchallenged statement that the situation won't affect Francis' personal wealth. I suspect Wynn's lawyers will have a field day with that.

 

I'm sorry, I got no sympathy for this guy. He was a big man in Vegas. Now he's a chump. He probably owes his lawyers more than he owes Wynn at this point. Most people would be embarrassed about losing that much and pay it off quietly. I usually admire people who have no shame. But, not this dude.