Gambling Icon Caesars Going All Out To Restructure

Published Saturday, December 20, 2014 -
Gambling Icon Caesars Going All Out To Restructure

It is not as if everyone didn’t see this coming with the posturing and restructuring and foray into online gambling Caesars is may finally bite the bullet and declare it is bankrupt. In an effort to reorganize its financial house the company announced recently it would divest itself of $10 billion of debt and clear the road to bankruptcy by January in the new year. All the plans in the world cannot become reality unless the court and gambling regulators approve of the strategy. Caesars Entertainment says the plan will be scuttled if lawsuits against the idea are launched.

The proposed strategy still requires a greater percentage of the Caesars creditors to sign on to the arrangement with a mere thirty eight percent of them going with the idea. A minimum of sixty percent is the magic number to make the deal a reality. The Securities and Exchange Commission filing has a stipulation that requires Caesars Entertainment to indicate it will file for bankruptcy between January 15th and the 20th 2015.

Caesars made the deal a little bit sweeter with the offer of a cash buyout for those investors who didn’t want the restructured debt. Creditors have been told they could recover investments in cash and new debt, with Senior lenders getting $705 million in cash and $3.25 billion in new debt. Senior holders of Caesar’s debt would get $413 million in cash and $2.3 billion in new debt. Adding to the offering is a $1.45 billion cash buyout to creditors who would rather it than new debt.

The plan has created a lot of uncertainty for the heavily loaded firm. CEO of Caesars Entertainment, Gary Loveman commented recently on the situation, "Business operations at all properties and the Total Rewards program will continue as usual throughout the balance sheet restructuring process,"

Where the company proposes it will go with its online gambling operations is also up in the air with hardly a mention of its performance in recent times.


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