The daughter company of the world’s most diversified casino-entertainment supplier, Caesars Entertainment Corporation is back on its feet after suffering nearly three years of complex bankruptcy.
Caesars Entertainment Operating Company exited bankruptcy after its parent concluded a restructuring plan which saw it chop down $10 billion off its debt of 18 billion dollars.
Back in January 2015, Caesars Entertainment Operating Company (CEOC) was filed for chapter 11 bankruptcy protection with long-term debts of an estimated $18 billion.
In addition, the company faced multi-billion-dollar suits, bitter recriminations and fraud allegations. Following the circumstances mentioned, Caesars Entertainment’s parent company then decided to merge with subsidiary Caesars Acquisition Co and separated its US-based property assets from its gaming assets.
FAST FORWARD TO 2017: CAESARS RESTRUCTURING
Caesars CEO Mark Frissora says the restructuring of Caesars Entertainment Operating Company is expected to leave Caesars Entertainment with “an expected enterprise value of approximately $20 billion.”
Frissora further mentions that “with reduced leverage, increased free cash flow and the new REIT structure” the company is positioned with “a solid foundation to pursue a diversified growth strategy.”
“The newly restructured Caesars Entertainment is positioned to further invest in its growth strategy and realise the benefits of a simpler and less leveraged capital structure,” Frissora added.
CAESARS’ HIGHEST DEBT
Moreover, reports mention that the casino giant first had its highest industry debt previously in 2008, when it was bought in ‘a highly leveraged takeover by Apollo and TPG for $31 billion’. That led the company to be burdened with interest payments of $2 billion annually. Thereafter, the company was unable to make a profit.
In Other News
Caesars Entertainment – together with its employees, chefs and celebrities – has taken a stand to raise $2 million in donations to support victims of the recent Las Vegas shooting. The company continues to show support for the massacred victims’ families and hospital staff by providing them with food and other supplies.