Caesars Entertainment says it will buy an affiliate as it tries to smooth the reorganization of a struggling division and balance its debt load.
The Las Vegas casino giant says the merger with Caesars Acquisition will give it $1.7 billion in cash it needs to guarantee loans in a proposed bankruptcy deal it pitched to creditors of its debt-heavy operating division.
The announcement follows news that the corporation had a signed plan with some of its Caesars Entertainment Operating creditors to file for bankruptcy by mid-January and reorganize its finances without visitors to its hotel-casinos noticing a difference.
Earlier this year, Caesars Acquisition had bought three Las Vegas Strip properties and one in New Orleans — Bally's, The Cromwell and The Quad (later renamed The Linq Hotel & Casino) as well as Harrah's New Orleans — for $1.8 billion from Caesars Entertainment Operating. It left the operating division with a single Las Vegas Strip property — the flagship Caesars Palace — and fewer sources of revenue in the face of increasing debt.