Caesars Entertainment Corp has intended to expand its Caesars, Horseshoe and Harrah’s brands on the territory of the US and overseas after the company’s casino operating unit finally makes an exit from almost three years of bankruptcy.
Reportedly, according to some industry experts, the company may have lost the battle with its largest rivals such as MGM Resorts International, Las Vegas Sands Corp and Wynn Resorts Ltd, with the three of them having spend years in their market growth in highly-profitable Asian markets.
Caesars’ Restructuring Plan
As reported by Reuters, Greg Bousquette from G.C.Andersen Partners – the investment banking firm that advised unsecured creditors over the bankruptcy of Caesars – said that the brand was a leading gambling brand on a global scale, but that was more than two decades ago. The company has been trying to manage a massive debt of over $25 million for years. A large part of the debt was taken on in 2008 when a leveraged buy-out of Caesars was led by Apollo Global Management and TPG Capital. The operating unit of the company officially filed for bankruptcy at the beginning of 2015.
At the end of September, Casino Guardian reported that the restructuring plans of Caesars Entertainment and its subsidiaries have been greenlighted by the gaming regulators of the states of Louisiana and Missouri. As a result, the company emerges from Chapter 11 with a more simple structure after merging with Caesars Acquisition Corp and other affiliates, with the former creditors granted with a majority of the operator.
To date, Caesars operates casino venues in both the Missouri and Louisiana. At the time when its restructuring plan was given the green light, the brand’s properties in the afore-mentioned states were to be checked before the company was given the chance to proceed with its full exit from the Chapter 11 bankruptcy.
As Casino Guardian has earlier reported, the main operating unit of the company – Caesars Entertainment Operating Co. – that was the one that suffered most troubles, is planned to be separated from the rest of the group’s businesses. The parent company of the group, Caesars Entertainment, was to join forces with Caesars Acquisition Co. in order to focus on casino and hotel business. At the time when the announcement was made, the company shared its plans to finalise the merger at the beginning of October.
The Chief Exective Officer of Caesars – Mark Frissora – told the company’s investors back in September that the operator was primed for growth, explaining that a simpler structure after the bankruptcy would be more beneficial for the brand. In July, the company appointed two executives to oversee both US-based and overseas new projects and expansion of the operator.
Caesars has the intention of expand in target markets such as Japan and Brazil, which are currently considering to open up gaming and resorts licenses. The brand has already been granted with a preliminary approval for foreigners-only gaming destination in South Korea.