CEOC set to emerge from bankruptcy
American venue giant Caesars, which operates 47 casinos in five countries, has been given the go-ahead for its main operating unit to emerge from bankruptcy after two years in administration.
Caesars Entertainment Operating Co. Inc. (CEOC) is expected to emerge from chapter-11 bankruptcy protection later this year – with US$10 billion shaved off its $18bn debt burden – following the approval of its reorganisation plan yesterday by the bankruptcy court of northern Illinois.
Under the plan – which still requires the approval of gambling regulators – CEOC will separate its gambling operations and US property assets, with parent company Caesars Entertainment continuing to own and manage the the former and a newly created ‘real estate investment trust’ (REIT), owned by certain creditors, taking over the latter.
“While there is still much work ahead to complete this process, we are excited about the future of the Caesars enterprise”
“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,” says group CEO and president Mark Frissora. “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.”
Many CEOC casinos also double as live entertainment venues, with its flagship venue, Caesars Palace in Las Vegas, hosting residencies by Celine Dion, Elton John and Rod Stewart this spring.
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