Caesars Set to Emerge From Bankruptcy
6 years ago05 Oct
The long-running bankruptcy which has beset Caesars Entertainement Corp. will finally come to an end this weekend as the casino operator announced it will be able to âcomplete its exit from the Chapter 11 bankruptcy proceeding as scheduled and by October 6â, according to Casinonewsdaily.com.
Caesars currently currently manages the Harrahâs, Horseshoe and Caesars hotel and casino brands among others and had to delay their announcement on the wake of Sundayâs mass shooting at the nearby Mandaly Bay Casino and Hotel on the Vegas strip which saw 59 people die and hundreds injured, many critically.
Reuters reported that the Caesarsâ webcast âwas scheduled to coincide with a major gaming trade show in Las Vegas, G2E, where some 26,000 visitors gather annually for deal-makingâ, but that G2E organisers were âkeeping a close watch on safety after the âhorrific events that took place in Las Vegas earlier this morning.â'
The investor webcast, where the announcement was expected to take place, has been delayed for a week or two, but the exit from the âprolonged bankruptcyâ cleared its final stumbling block last month when the regulatory bodies of Missouri and Louisiana added their greenlight to that given by shareholders and Nevadaâs gaming regulators this summer.
Caesarâs bankruptcy came about as a result of âheavy conflict between the companyâs creditors and its private equity backersâ, with a $24billion debt resulting in a Chapter 11 filing in January 2015, followed by a prolonged period which saw âincessant bickering of the involved parties and their failure to agree on a restructuring planâ as reported by a CasinoNewsDaily staff writer yesterday.
The companyâs creditors accused the private equity firms of fraud and asset stripping, which triggered the almost three-year bankruptcy proceeding. It came on the back of an extended downturn in convention business, still blamed by some on remarks made in 2009 by then-President Barack Obama who said:
âYou canât go take a trip to Las Vegas or go down to the Super Bowl on the taxpayerâs dime.â
Sujit Indap of the Financial Times described the bankruptcy as âone of the nastiest corporate brawls in recent memoryâ, with creditors accusing the 2008 buyout equity firms of âunimaginably brazen lootingâ.
Their emergence from the bankruptcy will see Caesars new corporate structure âfocus its attention on developing empty plots it owns on the Las Vegas Stripâ as well as eyeing up âexpansion in Canada, Brazil, and Japan, which recently legalized casino gamblingâ, according to CasinoNewsDaily.
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