Caesars Entertainment Operating Company (CEOC) announced on Thursday, Jan. 15 that it has voluntarily filed for reorganization under Chapter 11 of the United State Bankruptcy Code. Eastern Band of Cherokee Indians officials assure that this move will have no effect whatsoever on the Tribe’s casino operations.
“The Eastern Band of Cherokee Indians has been made aware of today’s filing of Chapter 11 by Caesars Entertainment Operating Company (“CEOC”), a subsidiary of Caesars Entertainment,” said Principal Chief Michell Hicks. “Harrah’s Cherokee Casino Resort is not owned by Caesars Entertainment or its subsidiary CEOC, and is not part of the filing. The Harrah’s Cherokee Casino resort property will continue to be operated as normal.”
Chief Hicks added, “Our planned opening of the Harrah’s Cherokee Valley River Casino in Murphy, NC is moving ahead of schedule and we plan to open that business in the fall of 2015. We are confident that our current gaming operation and our planned expansion to the Murphy, NC property will be successful not only for our Tribe but for the entire region of western North Carolina.”
CEOC filed in the United States Bankruptcy Court for the Northern District of Illinois in Chicago. All Caesars Entertainment properties, including those owned by CEOC, are open for business and are continuing to operate in the ordinary course.
“Today, with the overwhelming support of our first-lien bondholders, we are moving forward to implement our previously announced restructuring plan, which is intended to strengthen CEOC’s financial condition and significantly reduce debt,” said Gary Loveman, CECO chairman. “We believe this restructuring is in the best interests of all of CEOC’s stakeholders and will result in a sustainable capital structure for CEOC and value creation for all stakeholders.”
Loveman continued, “The restructuring of CEOC is the culmination of a years-long effort to improve the health of CEOC’s balance sheet, which has included substantial investment in new and upgraded assets, especially in Las Vegas. I am very confident in the future prospects of our enterprise, which will combine an improved capital structure with a network of profitable properties.”
Randall S. Eisenberg, a managing director at AlixPartners, has been named Chief Restructuring Officer of CEOC. In this role, he will oversee the Chapter 11 cases and implementation of the restructuring transactions at the operational level.
– One Feather staff report