An internal move by Caesars Entertainment may mean bankruptcy filing for two of the company’s Atlantic City casinos, according to a report in the New York Post.
Apollo Global Management won approval to transfer control of its Caesars customer loyalty program away from the company that owns the Bally’s and Caesars entities. The Post reports that gaming analysts see that as a sign a bankruptcy filing is coming.
The owner of Caesars and Bally’s, Caesars Entertainment, would like to avoid making the $250 million payment due its junior creditors in December, sources told the paper. One of the schemes being floated to allow Caesars more time to restructure its debts is a spin-off of the Total Rewards program that serves as a players club across all company properties.
Experts say the Post was mistaken about the Atlantic City casinos. While it is possible—even likely, say some analysts—that Caesars may declare bankruptcy, such an action would not impact the company’s Atlantic City properties any more than it would the Las Vegas properties.
