Caesars Offers $4B In Revised Bankruptcy PlanCompany Looks To End Bankruptcy Fight |
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Caesars Entertainment has offered $4 billion to creditors of its operating unit in a revised bankruptcy plan that it hopes can end the court fights, according to a report from Reuters.
Earlier this week, The Wall Street Journal reported that Caesars is entertaining the idea of selling its online gambling division, Caesars Interactive Entertainment, for roughly $4 billion. CIE also controls the World Series of Poker.
A lawyer for the Caesars’ bankrupt operating unit told a U.S. Bankruptcy judge on Wednesday that the company would put $4 billion toward its restructuring agreement, up from the $1.5 billion originally proposed.
Caesars Entertainment Operating Co. has more than $18 billion in debt.
Bloomberg reported that Caesars would give creditors up to 47.5 percent of stock in its reorganized company, as well as $406 million in cash, $1 billion in convertible notes and a discount on rights to buy $500 million worth of stock.
The Chapter 11 bankruptcy has been complicated by creditors alleging that Caesars the parent company stripped away many of its best casinos from the operating unit to shield them from creditors. Caesars has denied those allegations.
According to the Reuters report, some creditors likely won’t be satisfied with the $4 billion, which would come from Caesars merging with another one of its affiliates, Caesars Acquisition Co. The creditors believe they can get $5.1 billion through lawsuits.
Caesars the parent company could potentially file for bankruptcy as well, depending on what happens with the creditor litigation.
Mitch Garber, CEO of CIE, said that there no guarantee a deal will happen for CIE. The WSJ reported that any potential deal might not include the WSOP, but instead involve CIE’s mobile-games business. The vast majority of CIE’s revenue comes from social casino games, rather than real-money online gambling.
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