Summary: There are five top 100 law firms representing Caesars in its Chapter 11 bankruptcy restructuring.
On Monday, Caesars Entertainment Corporation (CEC) announced that it is going to purchase its affiliate, Caesars Acquisition Company (CAC), according to law.com.
The move is being done in an effort to restructure a subsidiary that is facing Chapter 11 bankruptcy in the coming month.
The subsidiary of CEC, Caesars Entertainment Operating Company (CEOC), announced late last week that it is going to file for Chapter 11 in January. It will enable the company to drop $10 billion of debt, leaving just $8.4 billion of debt, according to a report from Reuters.
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CAC is being advised by Latham & Watkins in the deal. The board of director’s special committee is being advised by Skadden, Arps, Slate, Meagher & Flom. Paul, Weiss, Rifkind, Wharton & Garrison has been named in a merger agreement as counsel of CEC. The special committee at CEC is being advised by Reed Smith.
Centerview Partners, financial advisor to the special committee at CEC, is being represented by Weil, Gotshal & Manges.
In 2013, CAC was created to form a joint venture with CEC. It was called Caesars Growth Partners, which operated as an entertainment company and a casino asset. CAC is going to merge with CEC to create a smaller company that has stronger assets, according to the announcement made by CAC and CEC.
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Gary Loveman, the chair and CEO of Caesars Entertainment, said the following in the announcement:
“The merger of Caesars Entertainment and Caesars Acquisition solidifies our focus on owning assets in destination and high-growth markets and businesses, while maintaining the benefits of operating our network and the Total Rewards loyalty program. Upon completion of the merger and restructuring, Caesars Entertainment Corp. entities will be financially strong, with significantly reduced leverage and a much simpler and straightforward corporate structure.”
Loveman will serve as the chair and CEO of the combined company. With the announcement, Loveman also signed an extension on his contract, which keeps him with the company through 2016.
To read more about Chapter 11 bankruptcy, click here.
The press release stated the following:
“The merged company will be the preeminent gaming and hospitality company in Las Vegas. It will operate Caesars Palace and own 11 properties there, including nine casino resorts and the LINQ promenade and High Roller observation wheel. The merged company will also own CIE, Harrah’s New Orleans, Harrah’s Atlantic City, Harrah’s Laughlin and Caesars Acquisition’s current equity interest in Horseshoe Baltimore. All of the company’s properties will remain connected via the Total Rewards loyalty network.”
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