Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Real Estate

Caesars Entertainment Operating Company Plan Filed

Caesars Entertainment Operating Company (CEOC) filed with the U.S. Bankruptcy Court a Modified Chapter 11 Plan of Reorganization and related Amended Disclosure Statement. According to the Disclosure Statement, "The Debtors believe that the Plan maximizes the value of their two major assets - their business and their estate causes of actions against CEC and certain of its affiliates. To maximize the value of their businesses, the Debtors will reorganize into a real estate investment trust structure that will enable them to unlock substantial value for the benefit of their stakeholders given the relatively favorable valuations associated with such entities as opposed to traditional gaming companies. Under this structure, the Debtors will be split into two separate companies - OpCo and PropCo. Subject to certain exclusions, the Debtors will contribute substantially all of their U.S.-based real property assets to PropCo (including PropCo subsidiaries) (the 'Contributed Properties'), and PropCo will lease back most of those assets to OpCo in exchange for annual lease payments on the terms set forth in the Master Lease Agreements. The Debtors' contribution of real property assets to PropCo will be completed through either the Spin Structure or the Partnership Contribution Structure. The REIT will hold and control (either directly or indirectly) the general partnership interest in PropCo, and will also hold limited partnership interests in PropCo. To maximize the value of their estate causes of action against CEC and certain of its affiliates, the Special Governance Committee undertook a comprehensive independent investigation into the viability of such claims....Indeed, such releases are necessary for the Debtors' proposed reorganization because without them there would be no contributions from CEC to drive the significantly enhanced recoveries on which the Plan is premised."

Read more Bankruptcy News