Meanwhile, the plan to convert to REIT has also been reportedly opposed by a group of U.S. The union is strictly against casino REITs and fears that Caesar Entertainment’s REIT will be an extremely indebted business susceptible to the slump in the gambling industry, given the company’s high debt level. Notably, as per a recent Bloomberg report, a casino workers’ union has termed Caesars Entertainment proposal to spin assets of its bankrupt operating unit into a REIT too risky. The company has also been trying to manage its finances by spinning off divisions and dividing its casinos, trademarks and businesses. The company has thus been striving to clear its debts through the sale of assets and deals with creditors.

Caesars Entertainment was thus not able to rake in profits for a very long time, failing to recover from its debt load since recession. Moreover, the company’s high spending on property renovation to boost traffic has hurt profits significantly. This accompanied with the highly leveraged nature of the buyout kept the gaming company under pressure.

The global financial slowdown had a severe impact on the U.S gambling and casino industry. However, it launched an initial public offering in 2012 and began trading again. Per the restructuring plan, CEOC will alter its corporate structure by separating all of its U.S.-based gaming operating assets and real property assets into two companies, an operating entity (OpCo) and a newly formed, publicly traded real estate investment trust (REIT) that will directly or indirectly own a newly formed property company (PropCo).Ĭaesars Entertainment (formerly known as Harrah’s Entertainment) was taken private in 2008 by private equity firms Apollo Global Management and TPG Capital in a leveraged buyout worth around $30 billion.

Notably, in Jan 2015, CEOC voluntarily filed for reorganization under Chapter 11 of the United States Bankruptcy Code. Notably, the company’s shares rallied nearly 5% in yesterday’s trading session in spite of the news that a casino workers’ union regards the restructuring as a risky venture. Caesars Entertainment Corporation’s CZR plans to restructure operations of its bankrupt unit, Caesars Entertainment Operating Co.

Casino property reit