You really can’t make this stuff up. In an attempt to restructure its massive amounts of debt, Caesars Entertainment is selling four of its casinos. Only, they’re not selling them to an outside investor, they’re selling them to Caesars.
In a move that boggles the mind– after all what average person could pull this type of financial wizardry without ending up in a jail cell – Caesars Growth Partners (a subsidiary of Caesars Entertainment), will purchase Bally’s Las Vegas, The Cromwell, The Quad and Harrah’s New Orleans from Caesars Entertainment for $2.2 billion.
Caesars Entertainment has over $23 billion of long-term debt. The sale (to itself), will result in cash proceeds of $1.8 billion. In my opinion, this does very little to repair Caesars Entertainment’s balance sheet, but I guess they could always form another ten dummy companies or so, and then file bankruptcy on each of those companies. ONLY IN AMERICA!
The sale is expected to happen in the second quarter of 2014.
