Caesars files for bankruptcy -- it's official

It's official -- Caesars has filed for bankruptcy protection and the filing applies to Caesars Palace and other operating units but apparently not to all casinos operated by Caesars.

Curiously, the filing was made in Chicago.

Here is the press release from Caesars on its website:

http://investor.caesars.com/released...leaseID=891400

Why Chicago? It might have been because the major creditors who agreed to the filing (this is a pre-packaged bankruptcy that is okay with many of the major creditors) are in the Chicago area. It might also be because Caesars didn't want a bankruptcy court in an area where patrons and other parties in the Vegas market might easily be able to attend bankruptcy proceedings.

I am sure there is a federal bankruptcy court in Las Vegas. But bankruptcy court proceedings on the "home turf" could lead to a lot of other "media problems."

The papers were apparently filed early this morning according to the Las Vegas Review Journal in an article published online. Read it here:
http://www.reviewjournal.com/busines...les-bankruptcy

It is not unusual for bankruptcy courts to accept filings at midnight or even on weekends.

I was expecting the filing to be today, January 15th.

Now patrons (players, members of Total Rewards) will have to watch for possible changes. Caesars said this in its press release:

All Caesars Entertainment properties, including those owned by CEOC, are open for business and are continuing to operate in the ordinary course. All properties are continuing to host meetings and events and provide the facilities, amenities and experiences that guests expect. The entertainers who perform at Caesars properties will continue to do so on their ordinary schedule.

I am also curious to see what happens to Caesars publicly traded shares -- if they will continue to be traded or if they will be wiped out and replaced by new shares given to creditors as part of the bankruptcy deal?

Also note that another group of creditors filed an involuntary bankruptcy petition in Delaware -- probably where Caesars is incorporated -- and that could complicate the prepackaged voluntary bankruptcy plan.

Since this forum is primarily for players, if you see any changes at the casinos please report them.

Mr. Harris is turning in his grave....
http://gaming.unlv.edu/hof/1989_harrah.html

There was a key development Thursday according to the Las Vegas Review Journal which reported online: "U.S. Bankruptcy Judge Benjamin Goldgar in Chicago granted a series of routine motions Thursday, allowing the casino operator to pay employees and critical vendors and maintain its customer rewards program."

And Caesars is reporting on its own website that Harrah's Resort Southern California (Rincon in San Diego County) is not included in the bankruptcy filing. As we know, Caesars manages the casino/resort but it is owned by a local Indian tribe. I am thinking we will see no changes at Rincon because of the bankruptcy.

Quote:

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Originally Posted by odinoka

Mr. Harris is turning in his grave....
http://gaming.unlv.edu/hof/1989_harrah.html

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Don't you mean Mr. HARRAH

Quote:

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Originally Posted by timspeed

Don't you mean Mr. HARRAH

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Autocorrect?

This new article (Jan 18-19) from Bloomberg indicates that the Caesars bankruptcy plan is already facing stiff opposition and could even be derailed.

http://www.businessweek.com/news/201...-federal-judge

If derailed, which is a possibility, it really is a return to "business as usual" with Caesars still loaded with debt and looking for a solution. Having the bankruptcy filing "thrown out" doesn't really have any immediate impact. It just sends Caesars back to the negotiating rooms with its creditors.

We are very familiar with the Bankruptcy judge here in Chicago. Although arrogant, he is extremely bright. We thought that he would see through the previous transfers of key assets and unravel it as well.

If the bankruptcy is thrown out, doesn't that mean the creditors could force a bankruptcy. Then gut the business as they see fit (i.e.: bye bye RC and tier programs as you know).

Quote:

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Originally Posted by RoeIncarnate

If the bankruptcy is thrown out, doesn't that mean the creditors could force a bankruptcy. Then gut the business as they see fit (i.e.: bye bye RC and tier programs as you know).

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But not without a fight. Caesars still has its lawyers.

The philosophy of bankruptcy goes like this: a company is treated as a living thing with a right to life. No judge will allow creditors to kill that living thing, except when there is a Chapter 7 liquidation which can be viewed as a death with organs being donated to save others.