October 2, 2017 / 3:15 PM / in 19 days

Caesars expects casino unit to exit bankruptcy this week

CHICAGO (Reuters) - Caesars Entertainment Corp said on Monday it expected its main operating unit to end a long and costly bankruptcy by Oct. 6 as part of a move that would create a new structure for the owner of the Harrah‘s, Caesars and Horseshoe brands.

The statement came hours after news of a mass shooting in Las Vegas, where Caesars owns Caesars Palace and the Linq Hotel and Casino.

Caesars said in a statement on Monday it had received approval from shareholders and gaming authorities for the restructuring of CEOC, which filed for bankruptcy protection in January 2015.

As part of the reorganization plan, Caesars Entertainment - formed from the 2008 buyout of Harrah’s - will merge with another subsidiary, Caesars Acquisition Co.

That merger and the restructuring are still subject to certain financing and real estate transactions, various internal and third party transfers and other closing conditions, the company said in its statement.

Caesars plans to hold a webcast with investors at 4:30 p.m. Pacific Time.

The Caesars properties are located at the opposite end of the Las Vegas Strip where a lone gunman killed at least 50 people and injured more than 400 at a country music festival on Sunday from the 32nd floor of the Mandalay Bay.

A Caesars spokesman declined to comment on whether the shooting would impact the company’s long-awaited plans to end the contentious $18 billion bankruptcy of its unit, Caesars Entertainment Operating Co Inc (CEOC).

“Our hearts are broken for the many victims who were injured or lost their lives tonight in this unconscionable attack,” the company said separately via Twitter.

Shares of Caesars fell 1 percent to $13.48 in morning trading.

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