ATLANTIC CITY — The state Casino Control Commission approved a plan Tuesday that would allow Caesars Entertainment Operating Co., which owns Bally’s and Caesars Atlantic City, to lease operations of its properties to a newly formed operating company as part of a Chapter 11 bankruptcy reorganization.
The commission approved the reorganization plan, as well as the issuance of casino licenses for the newly formed company. As part of the reorganization, Caesars split the company into a real estate trust and an operating company. Under the plan, the real estate company would then lease operations to a newly created company.
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“We have heard today that upon implementation of the reorganization plan, the Caesars entities will have $16 billion less debt and $807 million less in annual interest and lease payments,” said Matthew B. Levinson, chairman and CEO of the commission. “That alone significantly improves the financial condition of Caesars entities.”
In January 2015, Caesars Entertainment Operating Co. filed for Chapter 11. The complex reorganization plan was first approved by U.S. Bankruptcy Court on Jan. 17, 2017.
Levinson said he is guardedly optimistic that Caesars will successfully emerge from bankruptcy and grow its Atlantic City gaming operations.