Caesars Atlantic City News - Page 6

The operating divisions of Caesars Entertainment Corp., which went into bankruptcy in January, has been filing monthly operating reports as part of its reorganization.

While Caesars's operating division is already in bankruptcy proceedings, the current litigation could derail its restructuring process and force the whole company into bankruptcy protection.

On Monday, Caesars' shares declined 16 percent in the first trading day after Bloomberg News reported a federal judge handed a small victory to creditors seeking to collect $750 million from the casino company's bankrupt operating division.

Other employees will have to file claims to receive their retirement payments, which Caesars temporarily stopped distributing as part of its Chapter 11 reorganization.

The New Jersey college bought the now-closed Showboat casino last year, before Caesars filed Chapter 11 bankruptcy.

The show is down to its five final contestants, one of whom will become the new head chef at Gordon Ramsay Pub & Grill at Caesars in Atlantic City.

The retirement plans were offered by businesses that were subsequently acquired by Harrah’s Entertainment in the company’s 2005 buyout of Caesars Entertainment for $9 billion.

The gaming industry has embraced REITs, which, by law, don’t pay federal income taxes.

Caesars Chairman and CEO Gary Loveman said he wouldn’t answer questions regarding the status of the restructuring of Caesars Entertainment Operating Co.

Caesars will continue to manage the properties, which will remain part of the company’s Total Rewards player loyalty program.

In a filing with the SEC Monday, Caesars said BOKF N.A. asked for payment on $750 million in debt plus interest. Caesars said it turned down the payment demand.

In a filing Wednesday with the SEC, Caesars dismissed as “meritless” a request from the Wilmington Savings Fund Society for immediate payment of $3.68 billion in principal and $185 million in interest.

Mark Frissora can earn up to 150 percent of his base salary in bonus pay, has use of the company aircraft, and will receive “certain relocation benefits” for moving to Las Vegas, the SEC filing said.

The change comes less than a month after Caesars placed its largest operating unit into a pre-packaged bankruptcy to eliminate almost $10 billion in debt.

Allowing the case to proceed in Chicago is considered a victory for the company and its private equity backers, Apollo Global Management and TPG Capital.

The efforts by Caesars Entertainment Corp. to restructure 81 percent of its gaming industry-high debt will be a “drawn out” process, a Wall Street ratings service warned investors Thursday.

The pre-packaged filing covering Caesars Entertainment Operating Co. has been agreed upon by 80 percent of the company's senior bondholders.

Whatever this state does, it does big. When it booms, it leads the nation in growth. When it busts, well — that’s epic, too.

The interest payment, due on second-tier debt covering its Caesars Entertainment Operating Co., business unit, has a 30-day grace period.

Shares of Caesars, traded in Nasdaq, fell $2.03 or 13.66 percent to close at $12.83.