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 / Bonds

Caesars Entertainment Operating Company Supplement Amended, Plan Effective & Summarized

Caesars Entertainment Operating Company (CEOC) filed with the U.S. Bankruptcy Court a sixteenth amendment to the Supplement for the Debtors' Third Amended Joint Plan of Reorganization. The Supplement contains the following documents: Exhibit KK: identity of members of the new boards and related Section 1129(a)(5) disclosures and Exhibit KK-1: redline to Exhibit KK in the fifteenth amended Supplement. Court-filed documents, note, "Pursuant to Article IV.R of the Debtors' Third Amended Joint Plan of Reorganization…this Plan Supplement sets forth the proposed composition of the OpCo New Board, the REIT New Board, and the Initial Board of New CEC, including a description of the anticipated directors and officers of each such entity and the nature of the compensation to be paid to any such director or officer that is an 'insider' as such term is defined in section 101(31) of the Bankruptcy Code….At this time, parties have designated all eleven members of the Initial Board of New CEC, subject to all necessary Approvals. The members of the new Board selected James Hunt to be Chairman. Along with Messrs. Hunt and Frissora, members of the Board include Thomas Benninger, John Boushy, John Dionne, Matthew Ferko, Don Kornstein, David Sambur, Richard Schifter, Marilyn Spiegel and Christopher Williams." The Third Amended Joint Plan of Reorganization subsequently became effective, and CEOC emerged from Chapter 11 protection. BankruptcyData's Plan Summary notes, "The proposed Plan achieves a complicated but tax-efficient corporate and balance sheet restructuring that maximizes the value of the Debtors’ two primary assets: its businesses and the estate causes of action against Caesars Entertainment Corporation, Caesars Acquisition Company, other non-Debtor affiliates, and certain third parties. On the business side, the Plan contemplates the transformation of the Debtors’ business into a real estate investment trust (or REIT) structure that offers tax and other advantages resulting in higher valuations for REITs than comparable non-REIT companies, allowing the Debtors to deliver additional value to its stakeholders." Caesars Entertainment Corporation (CEC) also announced completion of its previously-announced merger with Caesars Acquisition Company (CAC) and CEOC. Mark Frissora, CEC's C.E.O., comments, "The conclusion of CEOC's restructuring leaves Caesars Entertainment with an expected enterprise value of approximately $20 billion. With reduced leverage, increased free cash flow and the new REIT structure, we are positioned with a solid foundation to pursue a diversified growth strategy. Throughout the restructuring process, Caesars has invested significantly to upgrade and renovate its facilities. Total capex from 2015-2017 is expected to exceed $1.5 billion, which will benefit the company going forward." A corporate release notes that, as a result of the restructuring, CEC's debt has been reduced by more than $16 billion, excluding the capitalization of the $640 million per year lease obligation. This hotel and casino operator filed for Chapter 11 protection January 15, 2015, listing $12 billion in pre-petition assets. Visit BankruptcyData for the full Plan Summary.

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