Caesars Palace owners file for bankrupcy

[smurf]

http://www.cnbc.com/id/102340128#.

How on earth do you get $18 billion in to debt...who, what, why would any corporation/bank continue to support a firm to the tune of $18,000,000,000...surely at some stage some one some where says enough is enough long before it gets that bad.

crazy world

[George2Loose]

Thought Harrahs owned Caesars?

[KarmaDope]

Thought Harrahs owned Caesars?

Harrah's ARE Caesars. Hedge funds or something like that bought Harrah's and renamed it Caesars.

[redsimon]

I guess you get so deep in debt by using a leveraged buy out to buy Harrah's and rename it Caesars'?

[The Camel]

http://www.cnbc.com/id/102340128#.

How on earth do you get $18 billion in to debt...who, what, why would any corporation/bank continue to support a firm to the tune of $18,000,000,000...surely at some stage some one some where says enough is enough long before it gets that bad.

crazy world

It's the old saying "if you owe the bank £20,000 the bank owns you. If you owe the bank £2,000,000,000 you own the bank"

[Jon MW]

I guess you get so deep in debt by using a leveraged buy out to buy Harrah's and rename it Caesars'?

This, I think all their need for re-financing now comes from when they got taken over

[Karabiner]

http://www.cnbc.com/id/102340128#.

How on earth do you get $18 billion in to debt...who, what, why would any corporation/bank continue to support a firm to the tune of $18,000,000,000...surely at some stage some one some where says enough is enough long before it gets that bad.

crazy world

It's the old saying "if you owe the bank £20,000 the bank owns you. If you owe the bank £2,000,000,000 you own the bank"

Just the seven zeros to go for me then.

[Royal Flush]

http://www.cnbc.com/id/102340128#.

How on earth do you get $18 billion in to debt...who, what, why would any corporation/bank continue to support a firm to the tune of $18,000,000,000...surely at some stage some one some where says enough is enough long before it gets that bad.

crazy world

It's the old saying "if you owe the bank £20,000 the bank owns you. If you owe the bank £2,000,000,000 you own the bank"

Just the seven zeros to go for me then.

mbn

[OverTheBorder]

I found myself wondering in vegas how the hell a casino can lose.  However, having then realised by the size of the staff car parks, just how much it takes to keep one of those big casinos going.  How many rooms are now in vegas compared to 15 years ago?  Every hotel is super sized, much bigger than the one it replaced.

I assume they get rescued soon(ish)?

[tikay]

I found myself wondering in vegas how the hell a casino can lose.  However, having then realised by the size of the staff car parks, just how much it takes to keep one of those big casinos going.  How many rooms are now in vegas compared to 15 years ago?  Every hotel is super sized, much bigger than the one it replaced.

I assume they get rescued soon(ish)?

They won't need "rescuing" as such, it's a Chapter 11 thing (which is peculiar to the USA) for "bankruptcy protection".

In effect, they have now reduced their debt by stuffing junior debt.

http://www.ft.com/cms/s/0/46ffda10-9cd3-11e4-adf3-00144feabdc0.html#axzz3Ow9HGE91

[OverTheBorder]

I found myself wondering in vegas how the hell a casino can lose.  However, having then realised by the size of the staff car parks, just how much it takes to keep one of those big casinos going.  How many rooms are now in vegas compared to 15 years ago?  Every hotel is super sized, much bigger than the one it replaced.

I assume they get rescued soon(ish)?

They won't need "rescuing" as such, it's a Chapter 11 thing (which is peculiar to the USA) for "bankruptcy protection".

In effect, they have now reduced their debt by stuffing junior debt.

http://www.ft.com/cms/s/0/46ffda10-9cd3-11e4-adf3-00144feabdc0.html#axzz3Ow9HGE91

Ah, chapter 11! I do feel that Harrahs hotels tend to be the only ones that retain the old vegas feel.  The new hotels are all too nice for my liking!

[SuuPRlim]

How on earth do you get $18 billion in to debt...who, what, why would any corporation/bank continue to support a firm to the tune of $18,000,000,000...surely at some stage some one some where says enough is enough long before it gets that bad.

crazy world

Fairly sure that isn't $18billion of operating debt, if they'd lost $18billion operating then that would be quite a bad coup! I think lenders on this scale are generally more concerned with your ability to service the debt, over the total amount owed to creditors (although that's certainly not irrelevant!) if you owe $1billion, want to borrow another billion and have the means to pay it back then that's much better than owing £40k and no means to service it

These people are buying and selling money, not borrowing or lending it.

[Rupert]

vig joke