Caesars Announce Merger With Caesars Acquisition Company
We reported earlier in April on the “creative accounting” undertaken by Caesars Entertainment Corporation in an effort to settle their massive debts which are in excess of $18 billion.
Creditors went as far as to label what Caesars Entertainment Corporation did as looting. Earlier this year they adopted a strategy which involved stripping the high value assets away from the operating arm to other divisions.
Earlier in the year Caesars Acquisition purchased three Las Vegas Strip hotels and one in New Orleans from Caesars Entertainment Corporation. This resulted in a single Las Vegas Strip property remaining with the operating division while at the same time no additional sources of revenue.
Under pressure from creditors and in an effort to avoid filing bankruptcy Caesars Entertainment Corp. announced it will acquire its affiliate Caesars Acquisition Co, The merger will enable them to secure $1.7 billion in requires to guarantee loans to prevent bankruptcy.
Caesar Entertainment Corp. Announced that they have come to an agreement with some of their creditors to file bankruptcy by mid-January which they hope will allow them to restructure their finances.
CEO and Chairman Gary Loveman said that the move would result in a simpler and more straight forward corporate structure. In terms of the merger deal Caesars Entertainment corp. will take Caesars Acquisition in an all-stock deal which will give their shareholders about 62 percent of the combined company with the remainder going to shareholders of Caesars Acquisition.