Casino Giant To End Lengthy Chapter 11 BankruptcyYears-Long Case To Be Resolved Later This Year |
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Caesars Entertainment Corp., owner of the famed World Series of Poker, announced that a federal bankruptcy court has approved its reorganization plan for its main operating unit.
The bankruptcy case of Caesars Entertainment Operating Company, Inc. involved $18 billion worth of debt. Under the plan, CEOC will be able to shed $10 billion of the debt.
“CEOC will emerge from bankruptcy, separating virtually all of its U.S.-based real property assets from its gaming operations,” a press release said. “Caesars Entertainment will continue to own and manage the gaming operations. The real property assets will be held in a newly created real estate investment trust owned by certain of CEOC’s creditors. Caesars Entertainment will not own any equity interest in the REIT. In addition, in connection with CEOC’s emergence, Caesars Entertainment and Caesars Acquisition Company must complete their previously announced merger.”
According to Reuters, the Chapter 11 bankruptcy will officially be completed later this year, pending regulatory approval.
“The confirmation of the Plan of reorganization marks a major milestone in CEOC’s restructuring process and facilitates a path forward to emergence in 2017,” Casesars CEO and President Mark Frissora said.
“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.”
Caesars’ stock (NASDAQ: CZR) is up more than 10 percent over the past month.
The parent company, which has 47 casinos in 13 U.S. states and five countries, had $4.65 billion in revenue in 2015.
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