Caesars to Emerge from Bankruptcy, Again
September 13, 2018
Leading casino operator, Caesars Entertainment Corp, has confirmed that they would be emerging from their lengthy bankruptcy by the end of the week. The firm arranged to host an investor webcast, however, they cancelled it due to a deadly mass shooting through a concert on the Las Vegas Strip and left 59 people killed and more than 500 injured.
Caesars Entertainment Corp said that it will schedule the webcast and that it will be able to finish its exit from the Chapter 11 bankruptcy proceedings scheduled for October 6.
The betting operator has received the green light from stakeholders also from the competent monitoring bodies in the jurisdictions it runs to accomplish the move.
Caesars will emerge from bankruptcy through a union with one of its firms – Caesars Acquisition Company. The joint entity will go ahead with managing the casino. A created real estate investment trust will accept control over Caesars’ real estate possessions. The REIT will be bestowed to creditors of the top casino and also the hospitality company.
Caesars Entertainment Corp – Approval
Caesars received the needed approval from its shareholders in July and also from Nevada gambling regulators in August. The gaming regulators of Missouri and Louisiana gave the firm the green light in September. The endorsement from the latter two was the last obstacle before the casino's exit from insolvency. Currently, Caesars manages the Horseshoe, Harrah’s, and Caesars hotel and casino brands, to name a few.
Caesars’ Nearly Three-Year Insolvency and What Motivated It
Caesars Entertainment filed for Chapter 11 bankruptcy protection in 2015. This is because of the heavy conflict that took place between the firm’s creditors and private equity backers; TPG Capital Management and Apollo Global Management. The company’s creditors had accused the private equity company of asset stripping and fraud which resulted in the company being bankrupt. The casino took almost three years to come back from bankruptcy. This is due to the non-stop backbiting of the involved parties and their failures to agree on a rearrangement plan.