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Caesars Entertainment Bankruptcy Could be Finalized Soon

Posted on in Corporate Bankruptcy

For two years, Caesars Entertainment Corporation has been in and out of court with creditors over who must pay to repair the company's operating unit, which cannot repay its $20 billion debt on its own. As of September 2016, it appears that Caesars' bankruptcy battles could soon be over.

The current offer is $5 billion in cash, new debt, and stock in a reorganized version of Caesars Entertainment Corporation. Creditors in New York have until midnight on September 24th to accept or reject the deal, which could make or break the future of the company. If this offer is accepted, the company's senior leaders will have to give up certain concessions they won at earlier stages of the negotiation process. These concessions amount to hundreds of millions of dollars. The company hopes to reorganize and become profitable again, as is the case with all companies that file for Chapter 11 bankruptcy. However, this is not always possible. Sometimes, a company simply cannot be saved due to overwhelming debt, an inability to reach an agreement in bankruptcy court, or a lack of consumer demand for that company's product or service.

Difficulty Attracting Casino Visitors

One problem that Caesars Entertainment Corporation and other casino operations have faced is the lack of interest in casino gambling from younger adults. Millennials, the current generation of adults in their 20s and early 30s, do not visit casinos at the same rate as their parents and grandparents. There are multiple factors to blame for this, such as millennials' lack of disposable income when compared to previous generations, the availability of online gambling in parts of the United States, and the presence of e-sports as a way to wager.

Caesars has paid the price for this change in demographic interests. However, they have not given up hope. Casinos like Caesars in Las Vegas have announced drastic changes to their casino games and gaming areas coming in the near future, such as social features in casino games and games that require skill, rather than only chance, in an effort to recapture millennial interests. One dramatic change is remodeling casino gaming areas to look more like video arcades.

Will this work? Will gaming giants like Caesars become profitable again? Only time will tell. Not only will this task require finding ways to appeal to the younger generation, it will require a restructuring that allows the companies to operate without accruing overwhelming debt.

Work with an Experienced Elgin Bankruptcy Lawyer

If you are a business owner considering filing for Chapter 11 bankruptcy, no matter how large or small your business, work with an experienced bankruptcy lawyer from Newland & Newland, LLP. Our team of bankruptcy lawyers can work with you to determine the most effective course of action for your case and help you move through the bankruptcy process as efficiently as possible. Contact our firm today to set up your initial consultation with us. We serve clients in the North Chicago, Fox Lake, Zion, Winthrop Harbor, Waukegan areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.

(image courtesy of Jim G)

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