Caesars Entertainment Corp has filed for Chapter 11 bankruptcy protection in Chicago this Thursday as the operator looks to cut creditor debt for its Caesars Entertainment Operating CO division which operates Caesars’ 50 casino and leisure properties worldwide.
US news reports have stated that the gambling operator seeks to reduce its debt from $18.4 billion to $8.6 billion. The casino operator has been locked in a bitter stand-off with creditors concerning the appeal for its largest business unit as it filed for bankruptcy court hearings in November of 2014.
Caesars CEO Gary Loveman said in a Video statement that its casino operations (50 total) would remain open to the public and that the operator would continue to pay its suppliers in full. Loveman further stated that the bankruptcy filing would not apply to Caesars Entertainment Corp or its affiliates companies.
In its last quarter financial earnings report the casino operator recorded net losses of $900 million (£570 million), even though it had managed to grow revenues 6% to $2.21 billion.
The company has struggled since its 2008 leveraged buyout by TPG Capital and Leon Black Apollo GM to repay interest expenses on its debt load. Bloomberg News reported that it had been further indebted with additional interest rate repayments and on-going accumulation of bad debt.
The New York Times has reported that casino operator and its backers are fending off severe creditor challenges from Wall Street’s biggest investment firms including Oaktree Capital and Appaloosa Management, which directly challenged the court filings on Thursday.
Creditors have stated that they would be treated unfairly if Caesars were to be granted debt restructuring arrangements under Chapter 11 bankruptcy protection rulings.