Caesars Given Another Four Months By Judge To Control Bankruptcy

by San Antonio Attorney

The bankrupt operating unit of Caesars Entertainment will be probably be working overtime to control impending bankruptcy until March 15, as ordered by U.S. bankruptcy judge last Wednesday.

This decision will give the casino group another second extension filing for chapter 11 protection in January.

CEOC, the renowned casino operating company, proposed a new bankruptcy reorganization plan earlier this month.  This reorganization has the overall support of creditors holding $12 billion of debt, thus amounting to about two thirds of the total $18 billion overall debt.

The exclusivity bears the expiration date on Nov. 15. CEOC pleaded for another four months in order to convince junior bondholders for a mutual agreement to the proposed plan.  Should this plan be approved, this will split the business into an operating company and a real estate investment trust.

The company is also waiting for a assessment of pre-bankruptcy dealings from a nonbiased independent examiner.  The report was initially due by December but unfortunately it is not likely to be prepared until next year.

“The motion is thoroughly persuasive and will be granted,” said U.S. Bankruptcy Judge Benjamin Goldgar.

Goldgar emphasized the complexity of the case and the debtor’s progress of a mutual plan and the pending examiner’s report.

Maintaining control pertains to lower-ranking creditors who have rejected Caesar’s reorganization plan.  These creditors also cannot present a contradicting exit proposal for the casino group.  This was formed from the buyout of Harrah’s last 2008.

The next date for the court hearing will be on March 6, 2016 and while the results are still on the process depending on how Caesars Entertainment will institute measures in a span of four months.

The case in court is officially coded as Caesars Entertainment Co Inc, US Bankruptcy Court, Northern District of Illinois.

 

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