Caesars Entertainment Operating Company Files for Chapter 11, Intends to Strengthen CEOC’s Financial Condition and Reduce Debt
Caesars Entertainment Operating Company, a subsidiary of Caesars Entertainment Corp has finally decided to file Chapter 11 Bankruptcy to protect its restructuring plan for its financial long term debts. CEOC is the US facing entity that has reported they owe close to $18.4 billion in crippling debt to first lien holders.
As announced on the corporate site, “Caesars Entertainment Operating Co. Commences Voluntary Chapter 11 Reorganization to Implement Previously Announced Financial Restructuring Plan”
Under the restructure plan the company has already received support from 80% of First-Lien Noteholders. All of the properties owned by Caesars will remain open during the proceedings and will operate as normal.
Chairman for CEOC made a public statement regarding the bankruptcy events saying the company strongly believes the restructuring is in the best interest of all stakeholders with the end results being a substantial gain for all stakeholders. He also commented that the support they have received from its first lienholders has been overwhelming and they are already moving forward with the efforts of improvements for the health of Caesars balance sheet and new investments. Chairman ended with he is very confident that the future of CEOC will include a network of profitable properties and will gain capital structure improvements as well.
“Today, with the overwhelming support of our first-lien bondholders, we are moving forward to implement our previously announced restructuring plan, which is intended to strengthen CEOC’s financial condition and significantly reduce debt,” said Gary Loveman, Chairman of CEOC. “We believe this restructuring is in the best interests of all of CEOC’s stakeholders and will result in a sustainable capital structure for CEOC and value creation for all stakeholders. The restructuring of CEOC is the culmination of a years-long effort to improve the health of CEOC’s balance sheet, which has included substantial investment in new and upgraded assets, especially in Las Vegas. I am very confident in the future prospects of our enterprise, which will combine an improved capital structure with a network of profitable properties.”
All vendors and suppliers are guaranteed payment and will continue to see what they are owed under their normal terms and conditions that were provided on or after the filing date of January 15, 2015