Caesars Entertainment is one of six bidders currently in the running to create an entertainment complex in the city of Toronto. The Caesars brand is hoping that the casino project would produce much-needed growth and allow for creditors to support reorganization, as the Caesars Entertainment Operating Co. unit of the parent company is currently facing bankruptcy.

Creditors are pushing for Caesars Entertainment to fund a major payout under a reorganization plan. If the plan is supported by creditors, then an equity stake would be provided within the company’s parent. The parent company is fighting the plan as it would cost the private equity owners close to $2 billion. The private equity owners include TPG Capital and Apollo Global Management.

Caesars Entertainment Operating Co. has been telling creditors to accept a smaller payout so that they can then have a chance to take part in the recovery with a stake within the parent company as it improves. The Toronto project could be the tipping point for the creditors to approve a smaller payout.

In July of 2015, the city of Toronto voted to approve a casino that would offer live table games if a venue was included in the entertainment complex. A minimum of two development sites are already being considered within the city limits. According to the NYPost, a decision on who will win the opportunity to build the casino should be announced by the Ontario Lottery and Gaming Corp. next summer.

Sources of the NYpost report that since losing out on being involved in a project of Boston, Caesars has been looking for a new development. A casino located in the city of Toronto would be the largest venue in Canada which could create hundreds of millions in profits each year. Other major operators are also interested, including The Genting Group, so there is competition in regards to big names being under consideration for the project.

 

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