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.