Caesars Subsidiary to File for Chapter 11 Bankruptcy

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To help it reduce its long-term debt, Caesars Entertainment Operating Co. (CEOC), the main operating unit of Caesars Entertainment Corp., will file for Chapter 11 bankruptcy protection by mid-January, Caesars Entertainment Corp. announced this month.

CEOC will use its bankruptcy to catalyze a larger financial restructuring whereby it will split its U.S.-based assets into two companies: an operating entity and a publicly traded real estate investment trust that will own a newly formed property company.

The proposed restructuring will reduce CEOC's debt from approximately $18.4 billion to $8.6 billion.

"The planned restructuring of CEOC will allow us to establish a strong and sustainable capital structure for CEOC and maximize value for our stakeholders," CEOC Chairman Gary Loveman said in a statement. "We believe the financial restructuring plan we are announcing today is in the best interests of all of CEOC's stakeholders. We look forward to continuing to welcome guests across our network throughout this process. Business operations at all properties and the Total Rewards program will continue as usual throughout the balance sheet restructuring process."

CEOC currently owns, operates, or manages 44 Caesars-, Harrah's-, and Horseshoe-brand gaming and resort properties in 13 states and five countries. Caesars Entertainment, Caesars Entertainment Resort Properties, and Caesars Growth Partners will not be part of the court-supervised restructuring.

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