The group Caesars Entertainment has great difficulties
The Caesars Entertainment group is an international casino giant.
The group is particularly well-known for managing the famous casino hotel Caesars Palace on the Strip in Las Vegas, Nevada.
The company is currently facing some serious financial difficulties.
The company was placed under protection of US bankruptcy law on the 15th of January, because of their debts, in order to continue to function normally.
Restructuring plan
The Caesars Entertainment Corp has just unveiled a restructuring plan for their largest subsidiary, Caesars Entertainment Operating Company (CEOC).
The plan was approved by 80% of the first-lien note-holders who are the first to be informed if there is a liquidation.
The plan is the result of several years of work in order to improve the financial health of CEOC including different investments and a multiple modernisations.
It should give the subsidiary an opportunity to reduce their debt by about $10 billion, leaving it at $8.6 billion, as well as lowering the amount of annual interest, which is expected to be lowered around 75% – from $1.7 billion to $450 million.
The plan also includes the separation of the gaming activities and real estate assets of CEOC into two new branches: an operational and a real estate investment fund.
Before it can be carried out, the plan has to be accepted by a judge in Chicago.
Casino operator since 1937
CEOC currently operates a total of 44 establishments that are land-based casinos or hotels under the brands of Caesars, Harrah’s and Horseshoe..
The activities of the subsidiary have not yet been affected.
Caesars Entertainment was founded in Reno, in the State of Nevada, in 1937, and during the year 2008 the company was acquired by Apollo and TPG funds.
Since then, the group has recorded a decrease in sales especially after the international economic crisis hit the world, and competition from online gambling websites grew stronger.
Their establishments in Atlantic City also encountered serious difficulties.
So far, the group has not yet received a license for a casino in Macao in China, or in Singapore.
Last November, the casino operator announced a 3.2% decrease in sales in the first 9 months of the year, and total losses that reached $1.76 billion.
