Caesars Entertainment Corporation has been making the headlines lately but sadly, the news were predominantly negative and discouraging. Apart from the fine, imposed because of improper e-mail correspondence, Caesars has another huge issue to deal with – the chances for the company to file for bankruptcy are really high unless urgent measures are taken and the financial issues are solved.
The company is responsible for managing 50 venues in 13 states and it is a well known fact that the most popular of them have become unprofitable. It was announced that the current debt of the company is approximately $23 million. However, instead of reporting an improvement, a few days ago Caesars’ authorities announced that the amount of money, lost during the third quarter, was estimated to be $908 million.
Company’s managers started discussions with lenders and bank institutions two months ago with the aim of finding a way to avoid bankruptcy and remain available and most of all – competitive. It seems that saving the corporation is easier said than done bearing the huge debt in mind. More than $18 billion is the total sum, owed by Caesars Interactive Corporation.
Yet, some reliable sources announced that company’s managers have finally convinced major creditors to help them overcome the difficulties by establishing a plan for reconstruction that also includes bankruptcy of the largest venue, owned by Caesars, at the beginning of 2015.
The Chairman of the company, Gary Loveman, refused to reveal detailed information about the future ventures of Caesars at the conference where the activities of the company during the third quarter of 2014 were discussed. A lot of market analysts visited the conference and a great part of them were willing to discuss the delicate issue.
When asked for opinion, one of the analysts commented that it is not easy to analyze the actions of Caesars just because the managers refuse providing the experts with the information necessary.
Chad Beynon, a prominent gaming specialist, added that the investors who will probably be interested in acquiring Caesars should be experts in solving complicated financial situations.
Beynon was not willing to give his opinion about the stock of the company because he considered the situation to be really difficult.
According to a number of reports, the net loss of the company is 19,3 % higher, compared to the statistics of the same period last year.
Nevertheless, Loveman said that the talks with creditors have been going in the right direction so far.
Yet, experienced market analysts predicted that Caesars will most probably run out of money within six months and the bankruptcy will be unavoidable.
Five months ago Caesars suggested a new approach for paying the enormous debt by “distributing” the ownership of the venues to various investors. Actually, the casinos that are managed by Caesars Entertainment Operation owe the greatest part of the debt.
