Caesars Unit Eyes Exit from $18B Bankruptcy

Caesars Palace in Las Vegas

LAS VEGAS—Caesars Entertainment Corp. (CEC) said Tuesday that its main operating unit had won court approval for its reorganization plan, with a view toward Caesars Entertainment Operating Corp. (CEOC) exiting bankruptcy this year. CEOC’s $18-billion bankruptcy has been in Chapter 11 proceedings since January 2015.

When CEOC emerges from bankruptcy, it will separate virtually of its US properties from its gaming operations, and the properties will be held in a newly created REIT that will be owned by certain of its creditors. CEC will not hold any equity in the new REIT; nor will creditors Apollo Global Management and TPG Capital, who nonetheless will control a combined 16% stake in the new Caesars. First proposed ahead of the CEOC bankruptcy filing, the OpCo/PropCo split would involve most of the 39 casino-hotels CEC operates in 14 US states and one Canadian province.