Boston, MA 08/15/2014 (wallstreetpr) – According to reports, the recent decision of Caesars Entertainment Corp (NASDAQ:CZR) regarding transfer control of loyalty reward program has been pushed back by David Tepper, a hedge fund mogul. CZR is a known name in the field of casino and clubbing, but recent happenings have not supported the company. The owners of CZR wanted to transfer the control of first of its kind loyalty program to a separate entity, but David along with a few other bondholders made the road a little tougher for the company.
Details of the issue:
Caesars Entertainment Corp (NASDAQ:CZR) is controlled by a bunch of private equity owners led by Leon Black (Apollo Global). The chain is looking to get approval from a number of state gaming commission agencies. The first of these commissions is located in New Jersey where the regulators were supposed to vote for this move on Thursday. But the New Jersey Casino Control Commission denied giving license for the rewards entity and asked them to wait until next month. When reporters asked from the officials of New Jersey Casino Control Commission, they said that they had started an investigation regarding this license and still not sure if they would give license to CZR or not.
Although unsecured debt holders of Caesars Entertainment Corp (NASDAQ:CZR) told the New Jersey gaming regulators that had CZR received license to transfer the control, it would put Caesars Atlantic City and Bally’s Atlantic City into bankruptcy. There were twelve casinos in the city at the starting of the year, but now there are only two casinos left in the city, others have announced to shut-down.
The owners are trying to restructure CZR in a new way, and the latest loyalty split off program is a part of this restructuring program. The main reason behind loyalty split is but the extensive debt load on Caesars Entertainment Corp (NASDAQ:CZR). TPG Capital and Apollo executed a buyout transaction of Caesars worth of $30 billion in 2008, but the chain has not been able to earn as much profit as it expected initially.
