CAESARS NEEDS BANKRUPTCY LAWYER TO PAY DEBTS

Caesars needs bankruptcy lawyer to pay debts. Caesars Entertainment Corp. is the largest casino company in the country. Profits seemed to know no limit in the past. Times have changed. Gambling used to be immune to down economies. That is no longer the case. The gambling industry has been hit hard by competition. An economy that has many consumers running to bankruptcy lawyers themselves has not helped. Caesars has joined some of its former customers. The company had trouble paying its bills. It needed a bankruptcy lawyer for help to pay its debts. The result was predictable. The company has filed a Chapter 11 bankruptcy case. The bankruptcy filing was the only hope to address $10 billion in debt. Much of the debt was run up in the $30 billion buyout of Harrah’s that was led by Apollo Global Management and TPG Capital in 2008. Caesars is now responsible for that purchase. They are also on the hook for the debt that came with that purchase. The bankruptcy plan has its foes. The plan will attempt to split the company into two separate units. One will be a casino company. The other will be a real estate investment trust. This plan is being opposed by the junior noteholders. Under the bankruptcy plan, they will get paid less than ten percent of what they are owed. They are owed about $5 billion. The company states they need the bankruptcy filing to survive. The company states they do not anticipate having to close any casino. All of its 44 casinos will continue to operate during the bankruptcy case. In the past, no one could have foreseen a gambling business being in trouble. Let alone picturing a gambling company needing the hard work of bankruptcy attorneys to survive. That is exactly what has taken place. Now the work of the bankruptcy lawyers will be closely watched in this large bankruptcy case.