{"id":27121,"date":"2015-01-15T12:18:31","date_gmt":"2015-01-15T20:18:31","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=27121"},"modified":"2015-01-15T14:03:23","modified_gmt":"2015-01-15T22:03:23","slug":"caesars-goes-bankrupt-creditors-unhappy","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/","title":{"rendered":"Caesars Entertainment Goes for Bankrupt, While Creditors Decry Restructuring Plan"},"content":{"rendered":"
\"Caesars
Caesars Palace is run by Caesars Entertainment Operating Company, Inc., which has filed for Chapter 11 bankruptcy. However, all Caesars properties will remain open during the process, says CEO Gary Loveman. (Image: lasvegas.se).<\/figcaption><\/figure>\n

Caesars Entertainment Corp. (CEC) announced the filing of voluntary Chapter 11 bankruptcy this week for its main operating unit, Caesars Entertainment Operating Company Inc. (CEOC).<\/p>\n

The move was a bid to alleviate some of its astronomical $23 billion debtload<\/a>, the majority of which is held by the unit. CEOC listed around $12.4 billion in assets and $19.9 billion in liabilities in Chapter 11 documents on Thursday.<\/p>\n

The subsidiary and its affiliates employ about 32,000 people across the US and run 44 gaming and resort properties in 13 states, as well as in five other countries, including the flagship Caesars Palace<\/a> in Las Vegas.<\/p>\n

However the core message from the parent company is that its “business as usual” for all of its casinos.<\/p>\n

\u201cThe properties across the entire\u00a0Caesars Entertainment\u00a0network are open and will operate without interruption throughout CEOC’s reorganization process,\u201d said Gary Loveman, the CEO of CEC and chairman of CEOC, in an official statement on Thursday.<\/p>\n

\u201cOur guests will continue to earn benefits through the Total Rewards loyalty program, and our team remains entirely focused on delivering the same outstanding service and unforgettable entertainment experiences guests have come to expect from\u00a0Caesars Entertainment. Going forward, we will continue to develop and deliver new, innovative hospitality experiences to our guests.”<\/p>\n

We Come to Bury Caesars\u2026<\/h2>\n

But Caesars isn\u2019t out of the woods yet, as it faces a revolt from its lower-level creditors, who accuse the debt restructuring plan it has worked out with its major creditors of unjustly protecting the company\u2019s interests at the expense of their own.<\/p><\/blockquote>\n

While CEOC files for bankruptcy in Chicago, this group of lower-level creditors will be in a federal court in Delaware attempting to call a temporary halt to the Chicago case and to stop the restructuring plan from going through as drafted. The move this week follows months of negotiation and litigation between Caesars and its bondholders.<\/p>\n

Caesars countered that these creditors are trying \u201cto wreak havoc on the orderly process the debtors, their professionals, and the many consenting stakeholders have been preparing for months.\u201d<\/p>\n

Good Caesars \/ Bad Caesars<\/h2>\n

Caesars acquired most of its debt when it went private in 2008, following a $30.1 billion takeover by Apollo Global Management and TPG Capital, just around the onset of the global economic downturn.<\/p>\n

As the recession hit the land-based casino industry in America, the group, with its 50 casinos across the US, suffered.<\/p>\n

Caesars has lost money every year since 2009, and has struggled to pay the interest on its enormous debt. It recently posted 2014 Q3 losses of $908.1 million and last month defaulted on a $225 million repayment.<\/p>\n

“We believe this restructuring is in the best interests of all of CEOC’s stakeholders and will result in a sustainable capital structure for CEOC and value creation for all stakeholders,\u201d said Loveman.<\/p>\n

\u201cThe restructuring of CEOC is the culmination of a years-long effort to improve the health of CEOC’s balance sheet, which has included substantial investment in new and upgraded assets, especially in\u00a0Las Vegas. I am very confident in the future prospects of our enterprise, which will combine an improved capital structure with a network of profitable properties.”<\/p>\n

However, Caesars\u2019 disgruntled creditors have accused Apollo and TPG of attempting to create a \u201cgood Caesars,\u201d which will own its famous and valuable properties, and a \u201cbad Caesars\u201d to hold the debt.<\/p>\n","protected":false},"excerpt":{"rendered":"

Caesars Entertainment Corp. (CEC) announced the filing of voluntary Chapter 11 bankruptcy this week for its main operating unit, Caesars Entertainment Operating Company Inc. (CEOC). The move was a bid to alleviate some of its astronomical $23 billion debtload, the majority of which is held by the unit. CEOC listed around $12.4 billion in assets […]<\/p>\n","protected":false},"author":42,"featured_media":27130,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,10,13,18],"tags":[],"acf":[],"yoast_head":"\nCaesars Entertainment Goes for Bankrupt, While Creditors Decry Restructuring Plan<\/title>\n<meta name=\"description\" content=\"Caesars Entertainment finally files for Chapter 11 bankruptcy, but many of its lower level creditors remain opposed to its \u201cunfair\u201d restructuring plan.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Caesars Entertainment Goes for Bankrupt, While Creditors Decry Restructuring Plan\" \/>\n<meta property=\"og:description\" content=\"Caesars Entertainment finally files for Chapter 11 bankruptcy, but many of its lower level creditors remain opposed to its \u201cunfair\u201d restructuring plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2015-01-15T20:18:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-01-15T22:03:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/01\/Caesars-Entertainment-bankruptcy-filing.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Casino.org Staff Writer\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Casino.org Staff Writer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/\",\"url\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/\",\"name\":\"Caesars Entertainment Goes for Bankrupt, While Creditors Decry Restructuring Plan\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/01\/Caesars-Entertainment-bankruptcy-filing.jpg\",\"datePublished\":\"2015-01-15T20:18:31+00:00\",\"dateModified\":\"2015-01-15T22:03:23+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/8c48bf89dc86da77b4d856c7b3b78d77\"},\"description\":\"Caesars Entertainment finally files for Chapter 11 bankruptcy, but many of its lower level creditors remain opposed to its \u201cunfair\u201d restructuring plan.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/caesars-goes-bankrupt-creditors-unhappy\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/01\/Caesars-Entertainment-bankruptcy-filing.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2015\/01\/Caesars-Entertainment-bankruptcy-filing.jpg\",\"width\":1920,\"height\":1280,\"caption\":\"Caesars Palace is run by Caesars Entertainment Operating Company, Inc., which has filed for Chapter 11 bankruptcy. 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