Caesars finally settles $18bn bankruptcy case
Caesars Entertainment Corporation has been given the go-ahead to finalise its $18bn bankruptcy case, with the company now set to focus on restoring its Harrah’s, Caesars and Horseshoe brands.
Caesars Entertainment Operating Company (CEOC) won court approval from Chicago District Judge Benjamin Goldgar in the US Bankruptcy Court for the Northern District of Illinois to conclude a court-supervised restructuring process.
Finally ending two years of legal proceedings, CEOC will now follow the debtors reorganisation, which sets out a new strategy to shed $10bn of debt and separate US-based property assets from its gaming operations.
As part of the reorganisation plan, Caesars Entertainment will merge with another subsidiary, Caesars Acquisition Company (CAC) with plans to regroup its casinos and hotels under one roof.
The Caesars reorganisation plan is subject to certain gaming regulatory approval and financing transactions, as well as the completion of the parent’s merger with CAC.
Caesars private equity backers Apollo Global Management and TPG Capital will retain a 16% “collective” stake in the new business.
President and Chief Executive of Caesars Entertainment, Mark Frissora comments: “The confirmation of the plan marks a major milestone in CEOC’s restructuring process and facilitates a path forward to emergence in 2017.
“The new Caesars will be a stronger company with a healthy balance sheet, a plan for growth and investment, operating discipline and a relentless focus on employee and customer satisfaction.
Upon CEOC’s emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business. While there is still much work ahead to complete this process, we are excited about the future of the Caesars enterprise.”
Caesars now expects to emerge from bankruptcy later this year.
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