NJ Casino Control Commission Approves Caesars Plan For Bankruptcy Restructuring
This past week, according to the Press of Atlantic City, the Casino Control Commission approved the casino group’s plans to lease out operation of their properties to a third-party company.
“As part of the reorganization, Caesars split the company into a real estate trust and an operating company,” the paper wrote. “Under the plan, the real estate company would then lease operations to a newly created company.”
Caesars bankruptcy required $5 billion settlement
Caesars will emerge from its Chapter 11 bankruptcy this year, wrapping up a two year process that resulted in a $5 billion settlement and complicated restructuring, planning, and big shifts in debt holding.
The company’s casino arm, Caesars Entertainment, was bleeding badly before bankruptcy, the New York Times reported. However, through the process the company was able to buoy its finances when its biggest stakeholders sold off their stakes to appease creditors.
When the bankruptcy completed, the Times reported, creditors owned 70 percent of Caesars Entertainment Corporation. The parent corporation, Caesars Entertainment Operating Company, remained relatively intact throughout the bankruptcy proceedings.
Massive bankruptcy an “achievement”
A Reuters report indicated that the breadth of the Caesars bankruptcy case meant that finding a solution that pleased all parties would be a gargantuan task.
US bankruptcy judge Benjamin Goldgar, who oversaw the Chapter 11 proceedings, was quoted as saying, “It is a monumental achievement.”
John DeCree, an analyst at Gaming Union, told Reuters that Caesars was a pioneer because of how it managed the bankruptcy. He noted that all that was left was for Caesars to get “the new structure under control.”
Caesars took a huge step in that direction when New Jersey’s Casino Control Commission approved the company’s restructuring plan.[i15-table tableid=4306]