Caesars Entertainment Operating Company, Inc. announced it is moving forward to implement its previously announced financial restructuring plan. The plan is intended to reduce long-term debt and annual interest payments, while providing for significant recoveries for creditors and ensuring no interruption of operations across the company's network of properties. CEOC and certain of its U.S. subsidiaries have voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code. Caesars Entertainment, Caesars Entertainment Resort Properties and Caesars Growth Partners, which are separate entities with independent capital structures, have not filed for bankruptcy relief. Gary Loveman, Chairman of CEOC, remarked: "The properties across the entire Caesars Entertainment network are open and will operate without interruption throughout CEOC's reorganization process. Our guests will continue to earn benefits through the Total Rewards loyalty program, and our team remains entirely focused on delivering the same outstanding service and unforgettable entertainment experiences guests have come to expect from Caesars Entertainment. Going forward, we will continue to develop and deliver new, innovative hospitality experiences to our guests." CEOC will convert its corporate structure by separating virtually all of its U.S.-based gaming operating assets and real property assets into two companies: an operating entity ("OpCo") and a newly formed, publicly-traded real estate investment trust ("REIT") that will directly or indirectly own a newly formed property company ("PropCo"). Randall S. Eisenberg, a managing director at AlixPartners, has been appointed Chief Restructuring Officer of CEOC. In this role, Eisenberg will oversee the Chapter 11 cases and implementation of the restructuring transactions at the operational level.
