Caesars secures approval to end $18bn bankruptcy case
Caesars Entertainment Corp. has been given the green light to wrap up its $18 billion (€16.9 billion) bankruptcy case, with the company now set to focus on restoring its Harrah’s, Caesars and Horseshoe brands.
The firm’s Caesars Entertainment Operating Co (CEOC) division won approval in the US Bankruptcy Court for the Northern District of Illinois to conclude a court-supervised restructuring process.
CEOC will now follow the debtor’s ‘Plan or Reorganisation’, which sets out a new strategy to shed $10 billion of debt and separate US-based property assets from its gaming operations.
The plan is subject to obtaining gaming regulatory approvals, certain financing transactions and various other closing conditions, including the completion of the planned merger between Caesars Entertainment and Caesars Acquisition Company.
The approval comes after Caesars in September last year brokered an agreement with private equity backers Apollo Global and TPG to restructure its debt and emerge from bankruptcy.
The move came shortly after the firm finalised the sale of its Caesars Interactive Entertainment subsidiary; a decision that ultimately led to financial growth in the third quarter.
Mark Frissora, president and chief executive of Caesars Entertainment, said: “The confirmation of the plan marks a major milestone in CEOC’s restructuring process and facilitates a path forward to emergence in 2017.
“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.
“Upon CEOC's emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business.
“While there is still much work ahead to complete this process, we are excited about the future of the Caesars enterprise.”
Caesars expects to emerge from bankruptcy later this year.
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