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Caesars Entertainment Operating Company Conversion Approval Sought

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Caesars Entertainment Operating Company filed with the U.S. Bankruptcy Court a motion to authorize the Debtors to convert (A) Caesars World (B) Showboat Holding (C) Parball Corporation and (D) Grand Casinos from “Corporation” to “Limited Liability Company.”

The motion explains, “Pursuant to this Motion, the Debtors seek the authority to convert certain entities from corporations to limited liability companies under state law. The Debtors seek to take these steps in order to minimize certain cash requirements and potential tax liabilities associated with restructuring their business into a real estate investment trust, as is contemplated by the Debtors’ Plan. Importantly, the Debtors anticipate that they would conduct conversions substantially similar to those contemplated by this Motion in consummating any proposed plan involving a real estate investment trust structure, but doing so now provides additional benefit to the Debtors’ estates by allowing the Debtors to use book losses at these companies during the months prior to consummating the Plan to minimize future cash distributions and related tax liabilities. Furthermore, the benefit of implementing these conversions declines with each passing month. Therefore, the Debtors seek to execute these transactions now to maximize the benefit to the Debtors, their estates, and their stakeholders.”

The Court scheduled a June 22, 2016 hearing to consider the motion. Read more CEOC bankruptcy news.

The post Caesars Entertainment Operating Company Conversion Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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