The Caesars bankruptcy settlement has proven a windfall for Caesars Acquisition Corp. CEO Mitch Garber, who pocketed more than million from last year’s decision by Caesars Entertainment to sell its profitable online business to help fund the settlement.
CAC, a subsidiary of Caesars Entertainment, sold its Caesars Interactive Entertainment subsidiary last September to a Chinese group for $4.4 billion in cash.
The money proved crucial to Caesars’ ability to enhance its offer to the creditors of its largest casino division and so paved the way for the division to exit a torturous 18 months under the protection of Chapter 11 of the U.S. Bankruptcy Code.
The unit, Caesars Entertainment Operating Co., entered Chapter 11 in January 2015, buried under $18 billion of debt from its 2008 leveraged buyout by private equity giants Apollo Global Management and TPG Capital.
Current and former employees of CIE, including Garber, owned 14.7 percent of the company. Prior to the sale, CIE repurchased the shares held by its minority investors, including Garber, in exchange for cash payments.
Garber received $91.1 million, including $89.4 million from unvested CIE equity awards, according to a Securities and Exchange Commission filing. He also received a combined salary of $558,573 and a bonus of $1.1 million from CAC and CIE.
Garber helped found CIE in 2009 and has served since as its chief executive officer.
