An entertainment company in another state recently announced that its reorganization plan has been approved by a bankruptcy court at the federal level. The company that filed for Chapter 11 bankruptcy protection is Caesars Entertainment Corp. The reorganization plan was created for the company’s main operating unit. If a company in Massachusetts is facing financial challenges, Chapter 11 bankruptcy may be a viable solution.
The Caesars bankruptcy case involved a total debt amount of $18 billion. Under this plan, it will be possible for the company to get rid of $10 billion in debt. The company’s plan is to separate all of its real property assets in the United States from the company’s gaming operations.
Following the bankruptcy, the company will keep owning and managing its gaming operations. Its real property assets are slated to be held in a real estate investment trust that is newly created. This trust will be owned by some of the company’s creditors. No equity interest in this real estate investment trust will be owned by Caesars.
The Caesars bankruptcy process will be finished later in the year. Chapter 11 bankruptcy in the state of Massachusetts offers the benefit of helping struggling companies to reorganize in order to overcome their debt issues. In the end, a company that goes through this type of bankruptcy filing with the help of an attorney may be able to achieve a healthier balance sheet and thus be in a better position to pursue plans for further investment and growth in the coming months and years.
Source: cardplayer.com, “Casino Giant To End Legnthy Chapter 11 Bankruptcy“, Brian Pempus, Jan. 25, 2017