GGRAsia – Caesars’ OpCo to let creditors see pre-bankruptcy deals

Caesars’ OpCo to let creditors see pre-bankruptcy deals

May 07, 2015 Newsdesk Latest News, Top of the deck, World

The bankrupt operating unit of casino company Caesars Entertainment Corp has agreed to grant creditors access to records via an independent examiner looking at pre-bankruptcy arrangements. But a judge in the United States said on Wednesday he will wait until Monday to approve the agreement.

Bankruptcy judge Benjamin Goldgar sitting in Chicago, Illinois, said he would also decide then whether to grant creditors’ requests for access to communications regarding the likelihood of success of the largest U.S. casino operator’s restructuring plan.

Caesars Entertainment Operating Co Inc filed for Chapter 11 bankruptcy in January with US$18 billion in debt.

Some creditors have alleged that the private equity owners of Caesars Entertainment Corp – Apollo Global Management and TPG Capital Management – stripped the operating unit of its best casinos in the years leading up to the bankruptcy.

Judge Goldgar earlier ordered an examiner to investigate those allegations.

The Caesars parent on Wednesday reported its first quarter results for the period ending March 31. The results exclude any business activity from the operating unit that occurred from January 15 onward.

Net revenues for what is known as “Continuing Caesars Entertainment Corp” increased 21.0 percent year-on-year to nearly US$1.01 billion. The parent said that was mainly due to strong performance at Caesars Interactive Entertainment Inc. That unit owns and operates an online games business providing social and mobile games, the World Series of Poker and regulated online gaming in exchange for cash payments.

The Caesars parent also said first quarter performance benefitted from new openings of casinos, including Horseshoe Baltimore, and The Cromwell and The LINQ promenade in Las Vegas; as well as favourable hold in casino games judged year-on-year.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for Continuing Caesars Entertainment Corp grew 36.8 percent year-on-year to US$301 million. The parent said that was primarily due to “cost savings and EBITDA enhancing initiatives”.