As it continues to implement a reorganization plan as part of an attempt to emerge from bankruptcy, Caesars Entertainment Operating Company Incorporated has reportedly received approval to lease the operation of two if its New Jersey casinos to a soon-to-be-established subsidiary.
According to a report from The Press Of Atlantic City newspaper, Caesars Entertainment Operating Company Incorporated owns the Bally’s Atlantic City and the Caesars Atlantic City venues and won approval from the New Jersey Casino Control Commission on Wednesday to lease the running of these Atlantic City casinos to the new enterprise.
The newspaper additionally reported that the new casino-operating subordinate will not be required to hold a full casino operating license but is to instead apply for a Casino Service Industry License.
“After a decade of decline, Atlantic City’s casino industry is turning around,” Matthew Levinson, Chairman and Chief Executive Officer for the New Jersey Casino Control Commission, told The Press Of Atlantic City. “It is my hope that when the reorganization process is complete, Caesars [Atlantic City] and Bally’s [Atlantic City] will be able to focus on growing their business just like other operators in New Jersey.”
Caesars Entertainment Operating Company Incorporated is the operating arm of Caesars Entertainment Corporation and filed for Chapter 11 bankruptcy protections in January of 2015 with long-term debts of around $18.4 billion. Following numerous lawsuits, the matter was finally settled in January after Las Vegas-based Caesars Entertainment Corporation agreed a deal that will see it shed liabilities of $10 billion in exchange for merging with its Caesars Acquisition Company subsidiary and separating its United States property assets from its gaming operations.
“The reorganization plan was hammered out through a very contentious Chapter 11 bankruptcy process,” Levinson told the newspaper. “Before it becomes effective, the plan needs a variety of approvals from this commission as well as from the [New Jersey Division Of Gaming Enforcement]. The goal, as far as we are concerned, is to have strong [and] financially stable casinos.”
For its part, Caesars Entertainment Corporation declared that it will “continue to engage” with regulators in jurisdictions where further approvals are required in order for the successful completion of its restructuring.
“In addition to regulatory approvals, the merger is subject to approval by stockholders of both companies and other customary closing conditions and [Caesars Entertainment Operating Company Incorporated’s] restructuring is subject to the completion of the merger, certain financing activities, continuing oversight by the United States Bankruptcy Court and other customary closing conditions,” read a statement from Caesars Entertainment Corporation.