Caesars Entertainment to File Chapter 11 Bankruptcy Amid Pressure From Creditors
In 2013 — the most recent year with available data — 8,980 Chapter 11 bankruptcies were filed throughout the U.S.
And 2015 is already shaping up to be a similar year, with news of casino empire Caesars Entertainment Corp.’s largest division filing Chapter 11 bankruptcy in the coming days.
According to a January 13 Wall Street Journal article, the division, Caesars Entertainment Operating Co., which runs the famed Caesars Palace casino in Las Vegas, was last expected to file its own Chapter 11 bankruptcy petition on or around January 15. This news comes despite the fact that Caesars’ bondholders filed papers in a Delaware court seeking to push the company into an involuntary bankruptcy filing.
With its bankruptcy filing, Caesars is hoping to restructure its crushing amount of debt — $18.4 billion — and create a more feasible repayment plan. The company has been in the spotlight for months as negotiations for a smooth debt restructuring with its creditors have proceeded.
Eric Seiler, the gambling company’s attorney, did not tell the Wall Street Journal which court Caesars has chosen for its filing. Bruce Bennett, one of the attorneys for Caesars’ creditors that filed for the involuntary bankruptcy, was also unsure which court would receive Caesars’ filing.
Caesars has released a statement that says the creditors that filed the involuntary bankruptcy papers “lack merit,” and that their petition is a “transparent attempt to thwart” the company’s self-filed bankruptcy, according to U.S. News and World Report. The casino company has filed a lawsuit against two of those creditors in the New York Supreme Court.
Currently, Caesars still has yet to formally answer the creditor petition that would force them into involuntary bankruptcy, the Wall Street Journal reports.