One of the most complex bankruptcy cases in recent history involves Caesars Entertainment Operating Corporation (CEOC) seeking a Chapter 11 bankruptcy.
CEOC is attempting to restructure $18 billion worth of debt and halt four lawsuits brought by creditors against its parent company, Caesars Entertainment Corp (CEC). By filing for a Chapter 11 bankruptcy, all lawsuits against the parent company will come to a halt, allowing CEOC time to restructure massive debts.
CEOC is a very large corporation, with tens of thousands of employees spread across 38 hotels and casinos. Examiners will have to navigate through hundreds of separate legal entities associated with the company, each with differing assets and liabilities that will factor into the outcome of the case.
As one Chicago bankruptcy attorney put it, “[T]his will be a long and ugly one”. Legal fees for the case are expected to surpass $100 million.
How Can Small and Medium Sized Business Benefit From Chapter 11 Bankruptcy?
Fortunately, filing for a bankruptcy as a small or medium sized business can be a far easier and less expensive process. Smaller and medium sized businesses do not own hundreds of properties employing tens of thousands of workers. Bankruptcy attorneys will have an easier time telling a business which debts are eligible for restructured payment plans.
What other benefits of Chapter 11 bankruptcy are present in the CEOC bankruptcy case? Collection actions and lawsuits against its parent company, CEC, would come to a halt. The massive company could retain control over business operations and find ways to restructure debts without worrying about lawsuits brought on by creditors.
The Sader Law Firm – Kansas City Bankruptcy Attorneys