CEOC<\/a> filed for bankruptcy in June 2015, a staggering $18 billion in debt, an industry all-time-high. This was accrued when Caesars, then known as Harrahs, was bought out in a $30 billion leveraged takeover by hedge funds Apollo and TPG in 2007, just before recession kicked in<\/p>\nBitter Bankruptcy<\/b><\/h2>\n
Its bankruptcy plans immediately fell foul of its junior creditors who believed they were getting a raw deal. Many of them sued in a bid to hold CEC to guarantees of CEOC\u2019s debts.<\/p>\n
They also accused the company of systematically stripping the bankrupt unit of its most prized assets for the benefit of its controlling private equity backers, an accusation that was tantamount to fraud.<\/p>\n
Following sixteen months of bitter negotiations, that the last hold-out junior creditor agreed the terms of a radically altered plan in October 2016. The new deal offered junior creditors billions more in cash and increased equity in the reorganized company in return for the cessation of all litigation and allegations of fraudulent behavior.<\/p>\n
Last week CEC announced a Q4 loss that was ten-times worse than analysts\u2019 projections, largely due, it said, to a\u00a0$426 million\u00a0accrual related to the restructuring of CEOC.<\/p>\n","protected":false},"excerpt":{"rendered":"
Caesars Entertainment Corp (CEC) has amended the terms of a forthcoming merger between itself and subsidiary Caesars Acquisition Company (CAC), according to a filing this week to the Securities and Exchange Commission. Under the new terms, Caesars Acquisition shareholders will receive 1.625 shares of Caesars Entertainment for each share they hold. The move represents a […]<\/p>\n","protected":false},"author":42,"featured_media":45578,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,18],"tags":[],"acf":[],"yoast_head":"\n
Caesars\u2019 Merger Moves Step Closer as Bankrupt Unit Prepares to Emerge<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n