Tennessee residents may be interested to learn that Caesars Entertainment Corporation and Caesars Entertainment Operating Company, Inc. are filing for Chapter 11 bankruptcy. The U.S. Bankruptcy Court for the Northern District of Illinois confirmed the bankruptcy reorganization plan, and CEOC is now ready to begin a restructuring process that will be overseen by the bankruptcy court.
The terms of the bankruptcy plan include a separation of all of CEOC’s gaming operations from its real property assets in the U.S. While CEOC will retain ownership of its gaming operations, a new real estate investment trust will own and manage the real property assets. The newly created REIT will be owned by some of CEOC’s creditors, and CEOC will have no equity interest in the REIT. Part of the bankruptcy plan also includes a merger between CEOC and Caesars Acquisition Company.
The completion of the debt reorganization plan and Caesar’s emergence from bankruptcy is dependent on the successful completion of the merger, approvals for gaming regulatory licenses and financing. The CEO of Caesars Entertainment said that he believes the new company will be stronger, and he is excited about the company’s future.
Filing for Chapter 11 bankruptcy may be a good option for a company that is overwhelmed by debt. A bankruptcy law attorney may be able to help a business owner to determine whether Chapter 11 is the best option for getting out of debt. A lawyer may also help an owner develop a debt reorganization plan that may include a merger or the creation of a REIT.
Source: ABL Advisor, “Caesars Wins Approval For Chapter 11 Exit Plan,” Jan. 18, 2017