Caesars Entertainment submits plan of action for restructuring
Caesars Entertainment Operating Company (CEOC) has laid out its plans for restructuring the business to the United States Bankruptcy Court for the Northern District of Illinois.
CEOC, a majority-owned subsidiary of Caesars Entertainment Corporation (CEC), filed for Chapter 11 bankruptcy in January last year with debt worth $18.4bn.
The plans to reorganise the division include the distribution of $1bn of convertible notes that will be issued by “New CEC”, a new entity that will form from a merging of CEC and Caesars Acquisition Company.
Up to 47.5% of common stock in New CEC will also be distributed.
The recent development comes after Robert E. Gerber was announced as CEC’s chief restructuring officer earlier this month.
Examiner Richard J. Davis, a bankruptcy investigator, has looked into whether the actions of Apollo Global Management and TPG Capital, owners of CEC, harmed CEOC and its creditors by moving assets out of the subsidiary before the bankruptcy filing.
Davis said in March that the operator could be liable for damages of up to $5.1bn.
CEOC made a net loss attributable to CEC of $85m for the first quarter of 2016.
It was reported this week that Caesars Interactive Entertainment, the online arm of the business, could be sold for a figure near $4bn, according to Bloomberg, with more than one interested party having made a bid.
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