Future of Caesars Entertainment remains murky
By J.D. Morris, Las Vegas Sun
More than six months after a major division of Caesars Entertainment Corp. filed for bankruptcy, it’s still unclear exactly how the company will emerge on the other side.
Caesars wants a Chicago bankruptcy court to approve a restructuring plan that could shed around $10 billion in debt from the division, but lawsuits from some of the company’s creditors continue to complicate things. One recent court decision in particular threatens to create big problems for the entire casino company.
If Caesars’ plan is successful, the division that filed for bankruptcy will be reorganized under a real estate investment trust setup that will split it into two parts: one that owns casinos and another that manages them. That setup would have Caesars follow in the footsteps of other casino companies — including Penn National Gaming, the company buying the Tropicana — that have made similar moves toward real estate investment trusts.
Harrah’s Reno, Harrah’s Lake Tahoe, Harveys Lake Tahoe, Caesars Atlantic City and Bally’s Atlantic City were among the properties included in the bankruptcy filing in January.