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Caesars Entertainment division heading for bankruptcy filing

Posted January 13, 2015 10:00 pm

By KIMBERLY PIERCEALL

LAS VEGAS (AP) - Lawyers for the operating division of Caesars Entertainment say the company will file Chapter 11 bankruptcy in the Northern District of Illinois on Thursday.

The move is intended to seek relief after a 2008 buyout left the company saddled with billions of dollars in debt.

Lawyers for Caesars Entertainment Operating Co. revealed the timing and location of the move in a legal filing with a bankruptcy court in Delaware, where three creditors are attempting to push it into involuntary bankruptcy and prevent it from moving forward with its own plan.

A Delaware bankruptcy judge may decide where the case will proceed once the company makes its formal declaration.

The company says a majority of its debt holders have approved a pre-planned bankruptcy agreement that would reorganize Caesars Entertainment Operating Corp. into two companies - one to own casino-hotels and another to lease them - shedding $10 billion in debt.

In this Jan. 12, 2015 photo, a person looks out over a fountain in front of Caesars Palace hotel and casino in Las Vegas. The company said Friday, Jan. 9, it has a majority of the holders of its debt on board with a pre-planned bankruptcy agreement that would reorganize Caesars Entertainment Operating Corp. into two separate companies, one to own casino-hotels and the other to lease them, and cut its existing debt by about $10 billion. (AP Photo/John Locher) The Associated Press

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