GGRAsia – Caesars says has deal with senior creditors

Caesars says has deal with senior creditors

Aug 24, 2015 Newsdesk Latest News, Top of the deck, World

Casino group Caesars Entertainment Corp said in a statement on Friday it had reached agreement with its largest and most senior creditors on the restructuring of the company’s bankrupt operating division, Caesars Entertainment Operating Co Inc, known as CEOC.

The group described it as “a key milestone in Caesars Entertainment and CEOC’s efforts to implement a consensual restructuring of CEOC”.

In January, Caesars Entertainment placed CEOC into protective bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.

The group wants to convert the operating unit into a real estate investment trust (REIT). The casinos operated by CEOC are said to account for US$18.4-billion of the company’s US$22.8-billion in debt. The move would create two companies, a REIT owning the real estate and buildings, and an operating company leasing back the casinos.

The U.S.-based casino operator has plans to expand in Asia. The firm says it is a partner in a consortium on a casino project in South Korea’s Incheon.

Caesars Entertainment also aspires to build a casino resort near Manila International Airport in the Philippines.