The main operating unit of Caesars Entertainment Corp. has won court approval on Tuesday for a plan to shed its $10 billion of debt and end its $18 billion bankruptcy, according to a press release from the company on Wednesday.
The approval comes two years after Caesars Entertainment Operating Company (CEOC) filed for Chapter 11 bankruptcy protection, citing $18.4 billion in long-term debt.
The company says it expects to emerge from bankruptcy this year.
“The confirmation of the Plan of reorganization marks a major milestone in CEOC’s restructuring process and facilitates a path forward to emergence in 2017,” said Mark Frissora, president and chief executive officer of Caesars Entertainment.
Under the reorganization plan, CEOC will emerge from bankruptcy, separating virtually all of its U.S. based real property assets from its gaming operations.Caesars Entertainment will continue to own and manage the gaming operations.
The real property assets will be held in a newly created real estate investment trust (REIT) owned by certain of CEOC’s creditors, which will not be owned by Caesars Entertainment.
“Upon CEOC’s emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business,” said Frissora.
“It is a monumental achievement,” U.S. Bankruptcy Judge Benjamin Goldgar said at a hearing in Chicago after approving the reorganization plan, quoted by Reuters.