Caesars hopes to exit bankruptcy by October
Caesars Entertainment Corporation is one step closer to emerging from the two-and-a-half-year bankruptcy period, with only two more approvals needed.
The firm announced last week that the Nevada Gaming Commission granted the mandatory regulatory approval for the merger of Caesars Acquisition Company into its main operating unit Caesars Entertainment Operating Corporation (CEOC).
After the hearing of the Nevada Gaming Commission, Mark Frissora, President and Chief Executive Officer of Caesars Entertainment said: “Gaining approval in our home state of Nevada is especially gratifying as we near the conclusion of CEOC’s restructuring process.
“I am optimistic about the future of our company and its continued growth and contributions in Nevada,” he added.
Under its reorganisation plan, Caesars Entertainment Corp will divide its domestic real estate properties from its gaming properties. The Las Vegas-based casino operator, which currently owns 47 casino venues domestically and internationally, will continue running its gaming operations, whilst its real estate assets will be managed by a real estate investment trust (REIT). This trust was specifically created as part of the company’s restructuring plan and it is controlled by Caesars’ major creditors.
Moreover, the company filed a 800-page registration paper to the US Securities and Exchange Commission.
This approval in the casino’s home state follows the previous permissions from gaming authorities in Illinois, Indiana, Iowa, Maryland, Mississippi, New Jersey and Pennsylvania. Now, Caesars only needs the final approbation from Louisiana and Missouri regulators to finalise the restructuring plan and to completely exit from Chapter 11 bankruptcy.
If negotiations with creditors and regulatory bodies continue to be successful, Caesars Entertainment could end its two-year liquidity nightmare by October 2017.
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