Not trying to piss on anyone here, but this is blatantly wrong on both counts.
TR is essentially a massive liability for them, much more so than any asset value. What are they going to do? Tell players to F themselves??? What does that do to the "mail value" of TR??? In any proceedings TR will be a massive headache/liability and no one will be happy with the outcome. Get out while you can.
Second, on a pro-forma basis (which, roughly, means taking away interest payments and taxes) CET is still a big turkey. Operationally they still stink. Look at their quarterlies - they've had 1 profitable quarter since 2008 (or was it 2006?). Looking at interest payments as the issue for CET woes is missing the forest for the trees. It's simple - do you think they closed showboat and tunica because they were making money on them??? That has very little to do with their debt load; they stink operationally.
They've missed the boat on Macau, they're misplacing their intentions on online gaming and their recent bond moves will make it nearly impossible - or very expensive - to borrow in the future.
The only moves that save Caesars are rooted in NJ and the prospects are dim. The main one would be pushing the NJ legislature to allow foreign players to use the NJ gambling sites. If they can do that, NJ will win the online gaming wars (other states will stop their online gaming efforts) and it will save Caesars as a company. The second move would be if NJ allows sports wagering. That has potential revenue but was basically killed this past week with a Christie veto.
Don't listen to any of this nonsense of interstate compacts for online gaming and plans for casinos in Korea. CET needs NJ to succeed. Period. Paragraph.
I don't want to hear any arguing on these points. Some of us are intimate with CET - that's all I'm going to say about that . . .
They are slowly separating the bad assets from the good. The program's asset is the mailing list and transaction history. If they can split all the assets they can default on the bonds with the crap properties and emerge smaller but dept free. In fact the quality side of the company can just buyback a chunk of the properties for pennies on the dollar. Without interest payments I am sure they would do quite well.
Rich
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Posted by: funny.young.guy@gmail.com
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