What Caesars’ bankruptcy means for company, consumers, workers
By J.D. Morris, Las Vegas Sun
When the largest operating division of casino giant Caesars Entertainment filed for bankruptcy protection on Thursday, it was just the most recent piece of what has already been an intense and controversial path toward financial restructuring.
Expect more drama as the process moves forward.
For years, Caesars has struggled with a massive debt load, most of which is concentrated in the cash-strapped operating division called Caesars Entertainment Operating Company, or CEOC, which includes Harrah’s Lake Tahoe and Harveys. That division is now seeking to reduce its $18.4 billion debt load by nearly $10 billion.
The bankruptcy plan voluntarily put forward by Caesars is complex on its own, but the situation is further complicated by a dueling involuntary bankruptcy case filed by junior creditors.
“This is going to be a long and contentious, protracted process,” said Alex Bumazhny, a financial analyst for Fitch Ratings.