The operating unit of Caesars Entertainment Corp, the largest U.S. casino company, filed for chapter 11 protection to implement its plan to cut $10 billion of debt, Reuters reported today. The company said it has the support of its senior noteholders to implement the plan, which will reduce the operating unit's debt to $8.6 billion from $18.4 billion. The bankruptcy protection was filed by Caesars Entertainment Operating Company Inc. and several affiliates in the U.S. Bankruptcy Court for the Northern District of Illinois. They listed assets and liabilities of over $1 billion, according to the filing. Much of the debt is a legacy of the $30 billion leveraged buyout of Harrah's Entertainment that was led by Apollo Global Management and TPG Capital in 2008. Under the plan, the operating unit will be split into a casino company and a publicly traded real estate investment trust.
