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Caesars Entertainment Corp confirmed in a regulatory filing that it is contemplating bankruptcy as it will be unable to repay debts by the fourth quarter of 2015 without restructuring.
The gambling company spent $550 million and anticipates negative cash flow for the foreseeable future. Bloomberg News reports the company has reached an agreement on the principals of a prearranged bankruptcy with six of its first-line bondholders with the filing expected some time in January.
Caesars operating unit “does not expect its cash flows from operations will be sufficient to repay its indebtedness and will ultimately need to pursue additional debt or equity offerings or seek a refinancing, amendment, private restructuring nor reorganization under Chapter 11 of the Bankruptcy Code,” the company said in its filing with the Securities and Exchange Commission.
The company will begin laying off approximately 1 percent of its workforce. Caesars Entertainment Corp employs more than 68,000 workers.
- Aaron Goldstein, Gambling911.com
