With 52 casinos around the globe and roughly 68,000 employees, Caesars Entertainment is one of the largest gaming companies in the world. Recently, the casino conglomerate has found itself in debt to multiple sources to the tune of nearly $24.2 billion. With many financial experts predicting that Caesars Entertainment is heading straight for bankruptcy, the top name in gaming is reaching out to some of its bank lenders to try and reduce their debt. But even with help from creditors, is it enough to stave off declaring bankruptcy?
Caesars in Trouble
Over the past few years, Caesars has avoided significant financial woes by using multiple divisions to divide up casinos and profits. With the help of Caesars Entertainment Resort Properties and Caesars Growth Properties, the gaming giant has been able to split properties and revenue among its subsidiaries. Even with restructuring, Caesars hasn’t been able to keep a hold on all of their properties. Earlier this year, Caesars closed multiple buildings and casinos in Atlantic City, as well as a casino in Mississippi.
In an attempt to curb their extensive debt, Caesars has started talking with bank lenders and creditors. Hoping to gain some leniency on when and how much they owe creditors, Caesars is trying their hardest to avoid filing for bankruptcy. But some financial experts believe that no matter what the casino giant does, their end result is an inevitable bankruptcy filing.
What Can Caesars Do?
To avoid insolvency, Caesars Entertainment could do a couple things that might have a chance at saving the company from filing for bankruptcy. They can attempt to reorganize their finances outside of a courtroom or try to get creditors on their side. But with so much debt owed to a significant number of creditors, Caesars might have a problem doing either of these things.
Experts predict that Caesars should have no problems finding ways to keep their primary creditors happy, but will have issues keeping their secondary lenders at peace. If they are unable to manage their debts, Caesars could be headed for bankruptcy sooner rather than later.
For more information about filing for bankruptcy or for a qualified bankruptcy attorney in Las Vegas, contact DeLuca and Associates today.
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