Caesars Entertainment Operating Corp Files For Bankruptcy
Most casinos across the globe have experienced a poor 2014 as revenues diminished and expenses sky-rocketed. Macau, the biggest gambling hub in the world reported a massive $100 billion loss from its casino industry in 2014 and U.S casinos have also experienced similar challenges.
During 2014, four Atlantic City casinos shutdown operations and filed for bankruptcy and based on industry reports, there could be a few more U.S casinos shutting down in 2015.
Caesars Entertainment Operating Corp which is a part of the giant Caesars Entertainment Corp recently filed for bankruptcy. This particular division of Caesars Entertainment Corp is responsible for managing the Horseshoe Casino near Louisville.
Caesars Entertainment Operating Corp filed for bankruptcy as it is currently owes creditors around $18.4 billion. This is an important division for Caesars as it is responsible for managing a large number of Caesar’s 50 global properties. However, this bankruptcy filing has nothing to do with the main Caesars Entertainment Corp nor does it include any of Caesar’s affiliated companies such as Caesars Entertainment Resort Properties and Caesars Growth Partners.
The bankruptcy filing was expected as Caesars Entertainment Operating Corp had a huge debt since its acquisition by TPG Capital LP, Apollo Global Management LLC and other investors. The acquisition was completed back in Jan 2008 for a total of $30.7 billion where the investors managed to raise $6.1 billion of their own money and went into debt for the balance $24.7.
The Horseshoe Casino currently employs around 1500 employees and many casino workers fear for their jobs and are concerned about their future employment. However, a representative from the Caesars group released a statement which said
Horseshoe Southern Indiana is open for business and all operations at the property continue as usual. Guests will continue to have the same great experience and receive the same great service they are accustomed to.
Caesars Entertainment Operating Corp employs over 38,000 workers throughout its 38 casino properties and hotels. Gary Loveman, the CEO for Caesars went on record to assure customers that Caesar’s properties would continue to remain open and customers would get the same level of service they have been accustomed too. Loveman released an online video where he assured suppliers of timely and full payment. The video also assures casino employees to have faith as the company promises to pay them their salaries and benefits as usual.
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