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Caesar's deep in debt

Caesar's deep in debt

Caesar's Entertainment Corp. has managed to get itself into almost unrecoverable debt with $23.5 billion in long-term arrears. Most of this debt is due to a move by the company in 2008 to go private, exposing it to a $30 billion buy-out by its current owners, Apollo Global Management and TPG Capital.

The corporation has also been struggling with reduced attendance due to the recession, especially in Las Vegas where the corporation owns 10 casinos but also in Atlantic City where it owns 4 of them. In 2012, Caesar's collected over $8.5 billion in revenue but it also experienced a loss of $1.5 billion. Deputy General Counsel of Caesar's entertainment, Michael Cohen, said the debt was maneagable, however Moody's Investor Service has described it as unsustainable.

Caesar's latest move to reduce its debt was to raise over $1 billion by transferring ownership of three of its main businesses (Planet Hollywood Resort, Caesars’ Interactive Gaming Division and a Baltimore casino) into a brand new and publicly traded holding company.

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