It seems like the gambling industry in New Jersey remains unstable and the latest news, concerning Caesars Entertainment just come as a solid argument that approves of the seriousness of the current situation.
Apart from the closed casinos and the authorities’ attempts to save the fifth one from closure, now, there is a baffling issue with another popular gambling venue – Caesars Casino.
Last Friday, the managers expressed their willingness to start discussing the current financial difficulties with the bank authorities with the aim of reducing the debt, which is growing with a tremendous speed.
Experts, who have years of experience in the gambling industry issues, have even predicted that these debts are likely to result in bankruptcy and the worst of all is that the authorities are pressed for time. Urgent measures need to be taken otherwise Caesars Casino will have the same fate as The Showboat, Atlantic Club and two more venues that are no longer available on the gambling market.
The Securities and Exchange Commission got involved in the difficult situation. The Casino managers sent a report to the authorities, which says that they are struggling to overcome the financial issues and reduce the debt, which has already reached the enormous sum of $24 billion.
As a matter of fact, the previous day, the casino managers have given their promise to the creditors for a claim on cash provided that Caesars Entertainment Operating Co. fails in paying its debt back. The formal discussions with the creditors have been held for more than a month.
During the years, the company has put a lot of efforts in keeping its venues open and avoiding bankruptcy. Caesars Entertainment Resort Properties and Caesars Growth Properties divided the management of the properties but unfortunately, the efforts they made were insufficient. Currently, the debt of the company is the largest in the state.
The company sold out some of its most popular venues – the Atlantic City Country Club, the Showboat, Harrah’s Tunica and Claridge hotel.
The predictions of the financial experts are not too optimistic given the complicated situation. Bearing in mind the fact that the company no longer owns some of the most popular venues and the ones it still owns are having a hard time, the closure of the properties and the bankruptcy of the company is just a question of time.
Gary Thompson, a representative of Caesars, refused giving detailed information. However, Gary Loveman, a CEO of Caesars, commented that the company’s representatives are not even considering the alternative of filing for bankruptcy.
According to the financial analysts, the bankruptcy of Caesars is unavoidable. However, in order to prevent further costs, the authorities need to discuss the proper reorganization of the finance without making it a subject to a court hearing. All the experts are on the same mind – it won’t be an easy venture for Caesars but it is definitely worthy of trying. The company employs almost 70, 000 people, which means the more casinos close, the more people will be left unemployed.
