The "debt restructuring" that has been underway since this spring is certainly being undertaken to avoid bankruptcy down the road. The business hasn't turned as quickly as necessary for CZR to make good on debt that matures in 2015.
For the time being, CZR is solvent, and CZR and its debt holders have good reason to keep things afloat.
The most recent news article, which involves taking on some legal help, has to to with a related measure taken a couple of months ago, in which some properties were transferred to another CZR entity in exchange for a cash buyout, funded by an additional infusion from its buyout partners.
This transfer of assets, which will no longer back CZR debt, has made some debtholders nervous and they fear they may have got a raw deal. They've brought suit against CZR, and CZR has hired outside counsel to defend itself.
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All of the transactions surrounding the CZR buyout are unusually complex and have led some to easy speculation that CZR is in trouble.
Personally, while things have not gone swimmingly since the buyout (particularly the economy), I'm still optimistic that CZR will come out whole and strong in the end.
---In vpFREE@yahoogroups.com, <gander7038@...> wrote :
Just saw a news article that Caesars has hired a law firm to help it "restructure" its debt--which usually means bankruptcy. Does anyone know if this eventuality will negate Total Rewards points? My guess is yes.
Posted by: harry.porter@verizon.net
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