Caesars gets approval to end their bankruptcy case worth $18 billion
bankruptcy, Caesars Entertainment Corporation, Mark Frissora.
Posted on Monday, January 23, 2017 by "T".
The company's Caesars Entertainment Operating Co (CEOC) division had won the approval of the US Bankruptcy Court for the Northern District of Illinois to bring to a close a court-supervised process of restructuring.
Therefore, the US casino group Caesars Entertainment Corp. can now make the necessary steps to end its $18 billion (or €16.9 billion) bankruptcy case. They are now setting their sights on restoring their Horseshoe, Harrah's and Caesars brands.
From now on, CEOC shall be following the debtor's "Plan of Reorganization", a new strategy to solve their $10 billion debt and to separate US-based property assets from their gaming operations. Their plan still needs to acquire approvals from gaming regulatory boards, needs specific financing transactions and many other necessary conditions, which includes the planned merger between Caesars Acquisition Company and Caesars Entertainment.
President and Chief Executive of Caesars Entertainment Mark Frissora said, "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."
The approval emerged after Caesars, in September 2016, brokered an agreement with private equity backers TPG and Apollo Global to restructure their debt and rise up from bankruptcy. This move was mobilized after the company finalized the sale of their Caesars Interactive Entertainment subsidiary, which ultimately led to their financial growth in the third quarter.
The Caesars operating subsidiary had filed for bankruptcy protection on January 2016, when their debts of €18 billion racked up after a €31 billion leveraged buyout occurred in January 2008.
Caesars expects to rise up from its bankruptcy within this year.
10 comments for "Caesars gets approval to end their bankruptcy case worth $18 billion"
| doubletop777||1/23/2017 8:51:07 AM GMT|
| You would never have thought, that you would see the day, when Caesars Palace would be filing for bankruptcy. This is the most famous casino in the world and i am glad that they have come out of this|
| pochui||1/23/2017 8:55:59 AM GMT|
| yeah this quite unexpected, but probably they just overpaid big time, invested in huge projects at times where prices were high, customer base was healthy and the potential they saw was rosy all around and then they faced the downturn in the economy and decreased numbers of activity and boom... bankruptcy to the rescue.|
| Gerimantas||1/23/2017 12:33:06 PM GMT|
| I do not understand how these big companies can go bankrupt, they have so much money, very great people in the team, they can use the money to take part in marketing and get new clients and then those clients just spend the money and business is doing well, why go bankrupt? Too much money to go bankrupt I think.|
| TheMachineQC||1/23/2017 6:37:30 PM GMT|
Posted by Gerimantas:
I do not understand how these big companies can go bankrupt, they have so much money, very great people in the team, they can use the money to take part in marketing and get new clients and then those clients just spend the money and business is doing well, why go bankrupt? Too much money to go bankrupt I think.
Well that's just not how companies think. Companies will take gambles to make sure they grow continously. They will "invest" in advertising and new stuff because they have to keep growing. That's how entrepreneurs are taught to think at school. If you're not moving, you're moving backwards. (I don't completly agree with that way of thinking but that's what drives capitalism)
Besides, Ceasar's palace may be the most well known casino in the world but I'm sure some other casinos from Las Vegas are getting a lot more. I think Cesars had a hard time keeping regular high stakes players there and you can't run a casino on slot machines only.
| Mober||1/23/2017 7:18:59 PM GMT|
| It must be, if not the most known casino in the world, one of the top.|
A bunch of movies have been shot there, and one of the last and most famous,
was The Hangover.
And with wrong moves everything can fail...
| pajalnick||1/23/2017 8:15:14 PM GMT|
| but it seems to me that the mafia that is invented and bankruptcy is the only part of a larger operation for obtaining money ... of course the casino may go bankrupt but in this case it seems to me that this is a mafia operation .. Las Vegas mafia city|
| dule-vu||1/24/2017 12:53:42 PM GMT|
| wow,its strange when you read that some casino have to declare bankruptcy,especially when is famous casino like caesars!but know what is behind this and what moves they had,when they are now in this situation!|
| bowie1984||1/24/2017 2:18:24 PM GMT|
| Something wrong with the numbers here - first they say the case is about $18 billion but then it turns out their debt is just a little more than half of that amount. Could it be that the rest of eight billion is belongs to their former workers and all the companies who sold their goods to them?|
Somebody getting played here just don't know who and hoe.
| IndianAce1||2/8/2017 1:36:49 PM GMT|
| baffles me that a casino can go broke, it's the perfect business,the money that flows from gambling, which is always in the house's favour,,is just one part of a much larger picture... people show up lose their money playing rigged table games and slot machines, then leave.|
How can you go broke doing that?
| Mober||2/8/2017 8:57:15 PM GMT|
| They spent too much money building it in the first place.|
Then they have a huge number of staff some of them, (thousands)
With bad management and a bit of shortage in customers, anything can happen.
And some times as they say, it is location, location, location
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