1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

Caesars reveals new restructuring support plan with top lenders

Discussion in 'Casino Industry & Development' started by mrstealth, Aug 2, 2015.

Thread Status:
Not open for further replies.
  1. mrstealth

    mrstealth High-Roller

    Joined:
    Aug 7, 2009
    Messages:
    890
    Location:
    Midwest - Sister Bay, WI
    Trips to Las Vegas:
    62
    Finally some "good" news in relation to the CET Bankruptcy.

    According to an article published in yesterdays Review Journal, CET has reached a restructuring agreement with it's largest lenders. The article also states that it has reached agreement with the majority of the second tier lenders as well.

    http://www.reviewjournal.com/business/casinos-gaming/caesars-reveals-new-restructuring-support-plan-top-lenders

    They still need to resolve the lawsuits by the bondholders in Maryland and New York.

    Let's hope they can get this resolved sooner rather than later.
     
  2. chitownjohn

    chitownjohn High-Roller

    Joined:
    Nov 28, 2010
    Messages:
    660
    Location:
    Chicago
    Trips to Las Vegas:
    30
    It seems like everything is business as usual so does it matter to consumers if this gets resolved tomorrow or ten years from now?
     
  3. lithium78

    lithium78 High-Roller

    Joined:
    Sep 8, 2013
    Messages:
    899
    Location:
    New Jersey
    Trips to Las Vegas:
    4
    The funny this is that if and when Caesars emerges from bankruptcy, they might be better positioned for recovery than some of their competitors because they never got involved in the debacle in Macau. At the moment, though, they are having a lot of trouble with growth due to their overextension right before the Great Recession that led to all this debt.
     
  4. chitownjohn

    chitownjohn High-Roller

    Joined:
    Nov 28, 2010
    Messages:
    660
    Location:
    Chicago
    Trips to Las Vegas:
    30
    Yes, Macau has slowed down but I would hardly categorize it as a "debacle". Once restrictions are eased Macau will once again flourish and continue to be the worlds gambling mecca. I'm sure CET wishes they were in Macau instead of Tunica, Hammond and all of their other local establishments.
     
  5. Someone

    Someone High-Roller

    Joined:
    Jun 16, 2012
    Messages:
    694
    Trips to Las Vegas:
    1
    Macau is the reason that Wynn and LVS survived and the reason that MGM is not in BK yet......the only debacle in Macau was CZR failing to realize that Macau was something big and not participating there early on and all the worse paying too much for a golf course when they had no casino concession and thinking that the golf course would matter or there would be a concession for them down the road

    and this "new agreement" is meaningless it is almost with certainty that CZR will go into BK

    what Apollo and TPG are trying to do is unprecedented they are trying to have the leveraged buyout members of a deal (Apollo and TPG) come out of a BK with the same amount of payout on the dollar as junior creditors come out with and that has pretty much never happened

    generally if junior creditors take less than 100% of their loans in value the LBOs lose 100% of their equity and it is done for them

    and that is without all of the double dealing and questionable transfers of assets that have happened and without the highly questionable attempt to sell a small portion of a secured asset to a friendly 3rd party to then claim it is no longer 100% owned by CZR and thus the security on the assets is done and the bonds are now worthless......when the contract pretty clearly states that is not all that needs to happen for the security to be wiped out
     
  6. waverunner

    waverunner BBHMM

    Joined:
    Jul 27, 2012
    Messages:
    2,082
    Location:
    SoCal
    Trips to Las Vegas:
    120
    Caesars to sell Rio, buy Mirage...........OK, j/k.........LOL.
     
  7. lithium78

    lithium78 High-Roller

    Joined:
    Sep 8, 2013
    Messages:
    899
    Location:
    New Jersey
    Trips to Las Vegas:
    4
    I don't know if you follow financial news, but China is in a buttload of trouble right now. You can bet on Macau sinking like a stone pretty quickly. Wynn et al are going to take a major bath on it. Caesars has many problems of their own making, but they Forrest Gumped their way to good fortune by not involving themselves in Macau.
     
  8. vegasvic

    vegasvic VIP Whale

    Joined:
    Mar 13, 2013
    Messages:
    2,526
    Location:
    Wisconsin
    Trips to Las Vegas:
    45
    I've been waiting for CET to sell Rio. It's been going downhill for awhile, CET is sinking no cash into it. I've stayed there 3 times the last 2 years. There are a lot of advantages to the Rio, I don't know how it does financially but I think if someone invested some cash to update it a bit it could do really well. Like it used to.
     
  9. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,718
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    I don't know if you can say they will take a bath on Macau. They should have recoup their initial investments already. What they can't do is use Macau profits to cover their US debts. If CET had Macau money coming in when things went bust, they probably wouldn't be bankrupt right now, especially since they were still filling Vegas beds through Total Rewards during ther crash.

    Rio has been up for sale since at least '08. They won't lower the price and rumor has it most of the newer Vegas casino owners were all interested at some point. I think they will have to be more realistic soon because I think they want more than what MGM will end up getting for Mirage.
     
  10. Nevyn

    Nevyn VIP Whale

    Joined:
    Apr 13, 2007
    Messages:
    4,202
    Trips to Las Vegas:
    9
    I think the problem with the Rio remains that they simply can't command a price for it to make it worth selling.

    And the way they have let its brand erode, that problem is only getting worse. Who would want it at this stage? Off-strip hotels tend to either fall in the category of newest/latest/trendy or low-roller/locals joint. To make Rio the former would mean spending a LOT of money, and probably rebranding (arguably would have been a better target for Nazarian than Sahara, but also far more expensive). To make it the latter only makes sense if you can buy it on the cheap, and I think CET would rather have the convention space and enough revenue to keep the lights on than sell at that level.
     
  11. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,718
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    My dream is that Boyd would buy it. I am used to their Blue Chip Casino's Spa Tower and they have people out East familiar with the Borgata and have nothing in Vegas anything like it. My mother likes Boyd but I can't see her staying in one of their Vegas props, especially since she is used to going to Caesars. I don't think you can turn Rio into Borgata West for a reasonable cost but I don't think that it would be too dear a cost to do something a more refined than the Orleans, especially if CET at least keeps up on the room remodels. They need to invest in making the buffet back into something everyone talks about. And Boyd's got a big player database to work with so they aren't starting from scratch. It would be the same type of move as Harrah's did buying Park Place to add more upscale rooms to their inventory.
     
  12. mrstealth

    mrstealth High-Roller

    Joined:
    Aug 7, 2009
    Messages:
    890
    Location:
    Midwest - Sister Bay, WI
    Trips to Las Vegas:
    62
    the problem with selling the rio is where would they hold the World Series of Poker ? none of their on strip properties could handle it.
     
  13. grosx2

    grosx2 VIP Whale

    Joined:
    Mar 30, 2013
    Messages:
    1,409
    Location:
    Los Angeles
    Trips to Las Vegas:
    21
    CP couldn't handle it? More casino floor footage, more rooms, more convention space...
     
  14. leo21

    leo21 VIP Whale

    Joined:
    Jan 9, 2010
    Messages:
    4,718
    Location:
    Chicago South Suburbs
    Trips to Las Vegas:
    14
    They have an entire floor of the Palace Tower devoted to convention space and didn't they add more in Octavius? They could handle it at CP. And who says it all must be done in one hotel.
     
Thread Status:
Not open for further replies.