BankruptcyData’s detailed analysis and summary of Caesars Entertainment Operating Company’s Third Amended Joint Plan of Reorganization (Modified), dated January 13, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on January 17, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The proposed Plan achieves a complicated but tax-efficient corporate and balance sheet restructuring that maximizes the value of the Debtors’ two primary assets: its businesses and the estate causes of action against Caesars Entertainment Corporation, Caesars Acquisition Company, other non-Debtor affiliates, and certain third parties. On the business side, the Plan contemplates the transformation of the Debtors’ business into a real estate investment trust (or REIT) structure that offers tax and other advantages resulting in higher valuations for REITs than comparable non-REIT companies, allowing the Debtors to deliver additional value to its stakeholders.”
BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates going concern enterprise value of the Reorganized Companies, as of an assumed Effective Date of December 31, 2016, would be in a range between $10.2 billion and $12.6 billion, with a midpoint of $11.4 billion. The estimated going concern enterprise value was calculated as a sum of total enterprise value ranges for OpCo ($2.8 billion to $4.0 billion) and PropCo ($7.4 billion to $8.6 billion). The estimated going concern fully diluted equity value of NewCEC (including the NewCEC Convertible Notes on an as-converted basis, but before incorporating the proceeds of any New CEC Capital Raise), as of an assumed Effective Date of December 31, 2016, would be in a range between $5 billion and $9 billion, with a midpoint of $7 billion.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Caesars Entertainment Operating Company’s January 15, 2015 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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