Caesars’ Bankrupt Unit Emerges As Expected Merger Draws Closer

Caesars Casinos

Caesars Casinos

The Commission of Securities and Exchange has confirmed the amendment of the merger between Caesars Entertainment Corp and Caesars Acquisition Company.

The merger between CEC and CAC is likely to strengthen thanks to the reforms that have been done in recent times following the restoration process to revitalize Caesars bankruptcy unit.

However, CEOC gave the two merging groups a condition that would lead to the commission recognizing the merger. In the condition, CEOC said that for it to fully recognize the merger, it has to observe the timeline, which should be towards the end of 2017.

On what has been as observing the timeline, the two merging parties, CAC and CEC took a step to show how committed they are to the merger. Both parties agreed that CAC’s shareholders will get 1.63 shares from CEC. The 1.63 will be the amount shareholders will get for each share in CEC.

The new move is said to be just a starting point towards the revitalizing of the company’s bankrupt unit that is supervised by the court.

With the merging of Caesars Acquisition Company and Caesars Entertainment Corp means that the two-related companies will bring together their amenities under one management.

The target will be their various hotels, gaming floors and other related social amenities, which are likely to create real money casino gambling sites.

CEOC, which has shown substantial signs of emerging, is slowly shifting from gaming activities into real estate. This week, they said that CEOC is likely to shave $10 billion out of the $18 billion debt that rendered the unit bankrupt.

While CEOC is likely to fully recover from her bankruptcy issues in the later days of 2017, the condition for the merger, which was set not to go beyond this year, is likely to happen earlier than the set time.

CEOC Secures Credit Line

Caesars Entertainment Corp announced on Tuesday that the company’s bankrupt unit had secured credit facilities not mentioned earlier that are worth $1.44 billion that will aid in CEOC’s restructuring process.

In an official press statement, Caesars said that the money attained will be used to repay some debts, something that will help CEOC restructure itself.

“These proceeds that we have obtained from Term Facility will be of help in financing the debtor’s transactions such as repaying the debt we owe our creditors, expenses and related fees according to CEOC’s reorganization plan,” Caesars said.

It should be remembered that in 2015, Caesars, which then was known as Harrahs, had accrued a debt of $18 billion. Because of this enormous debt, CEOC said it was bankrupt, which was the truth.

The Aftermath of CEOC Bankruptcy

After the declaration of bankruptcy went through, junior creditors thought there was foul play. This prompted those creditors to sue CEC in order to guarantee payment.

Creditors also accused CEC for possessing CEOC’s valuable assets in a bid to weaken the CEOC’s paying power. The legal battle took nearly two years until October 2016 when junior creditors found relief.

Rich Caesar

Rich Caesar

Rich Caesar is our US gaming news correspondent for For the past six years, Rich has covered gaming markets in North America. Rich first joined in July 2014. Rich has written for a variety of gambling related publications over the years, and his work has been quoted in several industry magazines. He is always excited to bring a new perspective on what's happening in the gaming space. We look forward to what he writes for us next! Rich likes to keep updated with the worldwide gaming industry, and he takes special notice of anything new or that might be changing soon. Rich is originally from the United States but has spent many years living in different countries around the world. He loves anything outdoors and exploring, but he could also spend an entire day fishing on a boat without any difficulty. Currently, he lives in Canada.

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