New Jersey casino regulator approves Caesars reorganisation plan
The New Jersey Casino Control Commission approved on Tuesday the proposed plan for the reorganisation of Caesars Entertainment Operating Co (CEOC), The Press of Atlantic City reported.
The new approval will allow CEOC – which currently operates the Bally’s, Caesars Atlantic City, and Harrah’s resorts in Atlantic City – to lease operations of its properties to a newly-formed operating company as part of a Chapter 11 bankruptcy reorganisation.
As part of the restructuring plan, Caesars will split the company into a real estate trust and an operating company. The commission has now approved the issuance of casino licenses for the new company.
“We have heard today that upon implementation of the reorganisation plan, the Caesars entities will have $16bn less debt and $807m less in annual interest and lease payment,” said Matthew B. Levinson, Chairman and CEO of the commission.
“That alone significantly improves the financial condition of Caesars’ entities,” he added.
Caesars filed for Chapter 11 bankruptcy in January 2015 in an attempt to offload part of its $18bn debt. The complex reorganisation plan was first approved by the US Bankruptcy court on 17 January, 2017.
Levinson has now told The Press of Atlantic City he is guardedly optimistic that Caesars will successfully emerge from bankruptcy and grow its Atlantic City gaming operations.
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