Last month, more than 90% of voting creditors opted to approve the CEOC reorganization plan. The plan remains subject to obtaining gaming regulatory approvals, the completion of the CEC/CAQ merger, certain financing transactions and various other closing conditions.

Caesars Palace

LAS VEGAS—Caesars Entertainment Corp. (CEC) said Tuesday that its main operating unit had won court approval for its reorganization plan, with a view toward Caesars Entertainment Operating Corp. (CEOC) exiting bankruptcy this year. CEOC's $18-billion bankruptcy has been in Chapter 11 proceedings since January 2015.

When CEOC emerges from bankruptcy, it will separate virtually of its US properties from its gaming operations, and the properties will be held in a newly created REIT that will be owned by certain of its creditors. CEC will not hold any equity in the new REIT; nor will creditors Apollo Global Management and TPG Capital, who nonetheless will control a combined 16% stake in the new Caesars. First proposed ahead of the CEOC bankruptcy filing, the OpCo/PropCo split would involve most of the 39 casino-hotels CEC operates in 14 US states and one Canadian province.

The reorganization plan also calls for CEC and Caesars Acquisition Co. (CAQ) to complete their merger, a course of action that was first announced in December 2014. The merged company will be one of the world's largest gaming and entertainment companies.

“The new Caesars will be a stronger company with a healthy balance sheet, a plan for growth and investment, operating discipline and a relentless focus on employee and customer satisfaction,” says Marc Frissora, president and CEO of CEC. “Upon CEOC's emergence, we will be positioned to strengthen our financial and operational performance by pursuing new opportunities to invest in and expand our brands and business. While there is still much work ahead to complete this process, we are excited about the future of the Caesars enterprise.”

Last month, more than 90% of voting creditors opted to approve the CEOC reorganization plan. The plan remains subject to obtaining gaming regulatory approvals, the completion of the CEC/CAQ merger, certain financing transactions and various other closing conditions.