Restructuring of Gambling Giant Caesars Moves Ahead

Published Friday, January 16, 2015 - Online-Casinos.com
Restructuring of Gambling Giant Caesars Moves Ahead

In business much like playing poker you have to know when to hold and when to fold which is determined by the amount of money one is going to lose or win. Caesars Entertainment is one business that has been holding on for some time now to the tune of around $18.4 billion (€15.8 billion) in debt which by many standards is an enormous amount to be on the hook for.

Corporate structures are complicated so at times it seems difficult to understand the mechanisms involved. A recent announcement by subsidiary Caesars Entertainment Operating Company which is part of the Caesars Entertainment Corporation, that it has decided to file for Chapter 11 bankruptcy protection comes as no surprise.  The move is aimed at a financial restructuring plan to reduce the company’s long-term debt.

 The plan, which was supported by more than 80% of first-lien note holders, will allow all of the properties owned by Caesars to remain in business. The Caesars Entertainment, Caesars Entertainment Resort Properties and Caesars Growth Partners operations, are all separate entities with independent capital structures, and none of these entities have filed for bankruptcy relief.

Gary Loveman chairperson for Caesars Entertainment Operating Company commented,  “With the overwhelming support of our first-lien bondholders, we are moving forward to implement our previously announced restructuring plan, which is intended to strengthen CEOC's financial condition and significantly reduce deb. We believe this restructuring is in the best interests of all of CEOC's stakeholders and will result in a sustainable capital structure for CEOC and value creation for all stakeholders.” Loveman continued, “The restructuring of CEOC is the culmination of a years-long effort to improve the health of CEOC's balance sheet, which has included substantial investment in new and upgraded assets, especially in Las Vegas. I am very confident in the future prospects of our enterprise, which will combine an improved capital structure with a network of profitable properties.”

 

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