Major casino operator Caesars Entertainment Corp. and leisure company Caesars Acquisition Company announced that shareholders have approved their proposed merger that will help Caesars’ main operating unit to eventually exit bankruptcy.
The two companies need to receive the green light from several regulatory bodies and once this happens they will be able to proceed with their planned merger. Caesars President and CEO Mark Frissora said in a statement on the matter that the shareholder approval was a significant step towards the deal’s completion and the reorganization of Caesars Entertainment Operating Co. (CEOC), the company’s main operating business.
CEOC filed for Chapter 11 bankruptcy protection in January 2015 and it took precisely two years for the company to have its restructuring plan approved by Northern District of Illinois Judge Benjamin Goldgar. Under the terms of that plan, Caesars will split its gaming business from its real property assets. Caesars Entertainment will still run the casino operations but the other assets will be controlled by a real estate investment trust, which will, in turn, be held by some of the company’s creditors.
Mr. Frissora revealed on Tuesday that they expect CEOC to exit bankruptcy in October, provided that all the necessary approvals are granted.
The reorganization plan received the nod from the New Jersey Casino Control Commission earlier this month. Caesars currently owns three casino properties in Atlantic City, known to be the only place in the state where land-based casino gambling is legal.
The casino operator’s CEO has previously explained that once the company puts its bankruptcy saga behind its back, it will focus its attention on expanding its footprint beyond its existing markets and developing a portion of undeveloped land it owns on the Las Vegas Strip.
Caesars is one of the major casino operators and developers to have expressed interest in the gaming markets of Brazil, Japan, and South Korea. It has also recently become known that the company is one of the three preferred bidders currently competing for the opportunity to take charge of three state-run properties in the Greater Toronto Area.
The Ontario Lottery and Gaming Corporation, the organization that currently controls the facilities, has recently announced a call for bids for the gaming venues in question in an attempt to attract investment from private operators. The measure has been taken as the OLG believes third-party investors will be able to help the venues fulfill their potential. Caesars is locked in competition with Malaysian casino resorts operator Genting Group and Canada’s Brookfield Asset Management.
