Caesars Misses $225 Million Interest Payment

9 years ago
Caesars Misses $225 Million Interest Payment
15:24
20 Dec

Caesars Entertainment Corp that owns and operates over 50 casinos and hotels, and seven golf courses under several brands, refused to pay the $225 million interest payment it owes to its creditors. A company announced that they will not pay the $225 million debt because they were still negotiating with creditors about the possibilities of restructuring the debt. The missed payment leads to a 30-day, which Caesars can use for negotiations, but after this time has lapsed, it will be forced to proclaim the bankruptcy.

Caesars Entertainment Corp reported to its investors that they have $1.8 billion in cash and property and in November the company claimed that the current debt needs to be restructured; otherwise in 2015 they will face bankruptcy or be forced to sell the company.

It is not the first time that bankruptcy is predicted for Caesars Entertainment but to date the company proved that those predictions were false. Gary Loveman, CEO of Caesars Entertainment, talked about the company’s conditio in an interview for the Las Vegas Review-Journal in February of this year.

Conditions that company faces today are better and not worse than they have been before. We don't have any significant debt maturities until 2018. We're much better structured. There is nothing that would trigger a liquidity crisis. We don't have anything like that. These same people have been predicting the bankruptcy of the company since 2009. So far, they have been unsuccessful in having that prediction made accurate Gary Loveman, Las Vegas Review-Journal;

The Caesars Entertainment’s problems have started after the company purchased WSOP in 2005 and decided to work on the expansion plan. In 2009, after the TPG Capital and Apollo Global Management have taken over the ownership, the company was forced to go private. In order to make their debts smaller, in 2012 they went back on the stock market and this, in turn, led to acquiring a huge debt they are facing today.

Even though the company is in debts, they didn't stop with the expansion; in 2013 Caesars Entertainment bought Planet Hollywood Resort, opened up Octavius Tower and built two casinos in Ohio. These properties will be used for quick liquidation need be and using these properties Caesars has created Caesars Acquisition which could help attract future investments for the future projects.

The stories about bankruptcy and selling the World Series of Poker didn't affect the company and they have rejected all predictions about their failure. Caesars Entertainment Corp is very confident about its future projects and future of the company in general.


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Ines is a Journalism student with many interests, poker being one of these. Her passion to learn and develop her horizons make her a valuable contributor to the site's content.Read more

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