Caesars Entertainment Operating Company (CEOC) was granted the approval for bankruptcy plan.
US.- Caesars Entertainment Operating Company’s (CEOC) bankruptcy plan was finally approved by the US Bankruptcy Court for the Northern District of Illinois. The Caesars unit is now set to take into effect the restructuring plan, which establishes the virtual separation between the gaming management of the company from the real property assets.
“The confirmation of the Plan of reorganisation marks a major milestone in CEOC’s restructuring process and facilitates a path forward to emergence in 2017. The new Caesars will be a stronger company with a healthy balance sheet, a plan for growth and investment, operating discipline and a relentless focus on employee and customer satisfaction,” expressed Mark Frissora, president and chief executive officer of Caesars Entertainment.
The US real property assets will be transferred to a new venture managed under a real estate investment trust (REIT) by some of the current CEOC’s creditors. “Upon CEOC’s emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business. While there is still much work ahead to complete this process, we are excited about the future of the Caesars enterprise,” added Frissora in yesterday’s statement.
Meanwhile, Caesars Entertainment Corporation (CEC) will have to complete the merger with Caesars Acquisition Company and will not be able to own any equity interest in the REIT. CEC unit will be only in charge of the gaming operations.
The approval enables Caesars Entertainment Corporation and its Chapter 11 debtor subsidiaries to fulfil their reorganisation plan of reducing US$10 billion in debt and ending its US$18.4 billion bankruptcy, which had been announced in 2015.