Posted on 01/14/2015 10:10:48 AM PST by C19fan
Caesars Entertainment Corp. ’s largest unit is preparing to file for bankruptcy protection as soon as Thursday, the final gambit of a years long attempt to salvage a soured buyout.
Caesars Entertainment Operating Co.’s Chapter 11 filing would launch the final stage of Apollo Global Management LLC’s effort to save some of its $1.7 billion investment in the company, which it took private in 2008 with fellow buyout firm TPG.
(Excerpt) Read more at wsj.com ...
It must really take a concerted effort to drive an empire of gambling halls into bankruptcy.
State of Ohio looks like it’s going to REALLY take it on the chin from this.
Weren’t the loans for the new casinos all state-backed?
Et Tu, Brute? *SMIRK*
What are the differences between chapter 7 and chapter 11 bankruptcy?
By Investopedia Staff
A:
Chapter 7 bankruptcy is sometimes also called liquidation bankruptcy. Firms experiencing this form of bankruptcy are past the stage of reorganization and must sell off any un-exempt assets to pay creditors. In chapter 7, the creditors collect their debts according to how they loaned out the money to the firm (also referred to as the “absolute priority”). A trustee is appointed, who ensures that any assets that are secured are sold and that the proceeds are paid to the specific creditors.
For example, secured debt would be loans issued by banks or institutions based upon the value of a specific asset. Whatever assets and residual cash remain after all secured creditors are paid are pooled together to be paid to any outstanding creditors with unsecured loans: e.g. bondholders and preferred shareholders.
Chapter 11 bankruptcy can also be called rehabilitation bankruptcy. It’s much more involved than chapter 7 as it allows the firm the opportunity to reorganize its debt and to try to re-emerge as a healthy organization. What this means is that the firm will contact its creditors in an attempt to change the terms on loans such as the interest rate and dollar value of payments. Like its cousin, chapter 11 requires that a trustee be appointed; however, rather than selling off all assets to pay back creditors, the trustee supervises the assets of the debtor and allows business to continue. It’s important to note that debt is not absolved in chapter 11: the restructuring only changes the terms of the debt, and the firm must continue to pay it back through future earnings.
If a company is successful in chapter 11, it will typically be expected to continue operating in an efficient manner with its newly structured debt. If it is not successful, then it will file for chapter 7 and liquidate. In both instances, common shareholders will most likely see little (if any) return on their investments.
7 come 11.
They rolled the dice.
They lost..................
I won $1600 in one of their slot machines in September, and won about $1000 on football bets.
I didn’t realize I hurt them so badly...
They need to bring Obama in. That way, they can burn all of the creditors, lend them millions at 2 APR, then forgive the new debt.
Yeah, if you own the casino, and you still end up losing money, you are definitely doing something wrong.
The economy must be in really bad straits if casinos are going under...............
When you list part time, and minimum wage jobs as “jobs”, this is what you get.
A ‘service economy’ will not work...........for long...................
And Chapter 13?
Another bad bet on the come by government!
Gambling sounds wonderful - only disposable income involved, it’s a ‘voluntary’ tax. Call an 800 number if you’re addicted (wink wink).
Problem is, disposable income is disappearing along with jobs along with state residents because the permanent, involuntary taxes haven’t been lowered and in most cases have been raised.
States and governors moaning about retiree pensions deserve no sympathy whatsoever. They paid these paper-pushers a king’s ransom, let them retire early (and double-dip in many cases) and are paying them another king’s ransom for doing naff all.
Government is like a dying star. When it collapses it sucks in everything viable around it.
In the NW, we have Indian casinos and they always try to build more. I do understand that the big Indian casinos in the east are in financial trouble. Foxwoods, the Pequot casino in Connecticut, for example. I heard this from a friend who worked for Indian Health Services.
I went to a couple of local casinos a few time. It was fun until it wasn’t. Couldn’t stand being around that many gambling, smoking, drinking addicts. Saturday nights were awful. Tuesday afternoons were fine. But I’m not a gambler. I only like winning.
Isn’t Chapter 13 for individual people instead of corporations?...................
They owe more then $28 billion... How do you keep spending and spending. They must think they are politicians with taxpayer money.
Gaming. Sigh, such a productive investment. It’s a little known historic fact that Benjamin Franklin, along with his inspirations for public police services, fire brigades, postal service and lending libraries, was a champion of gaming in the Colonies as a means by which “...our leather apron workers and common persons of every strype might benefit themselves and the commonweal with their fruits of industry and thrift well spent...”
Believe that and you’ll believe anything. Gaming is a pox.
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