Caesars Entertainment continues to study the White House debt management strategies, it would appear; namely, when you can not pay your debt off, acquire more, move things around on paper like a shell game, and appear to be you are using action by filing a near-Obamacare sized document with the Securities and Exchange Commission (SEC).

The company just filed an enormous 900-page treatise with the SEC, outlining how their debt restructuring would take place, just in case any of there is a long flight and need help falling asleep on board.

Restructured, But Not Out of Debt

The key term right here is ‚restructuring,‘ because nothing into the SEC filing actually shows any substantial moves towards immediate paydown of the industry-high accrued long-term debt of $23.5 billion. Simply to put that in perspective, that amount is higher than what Detroit owes the city that is american this summer took the honor of becoming the largest U.S. municipality to ever file for Chapter 9 bankruptcy security over its $18 billion in debts.

And like Detroit, Wall Street doesn’t always have much positive to say in regards to the way Caesars is using, despite the fact that, like its namesake, the ongoing company keeps expanding and extending its rule to all corners of the world. A year ago, despite bringing in a few $8.6 billion in revenues, they finished 2012 with a net loss of $1.5 billion. And with more than 50 casinos in 13 U.S. states with many of those properties nevertheless getting back on their feet as they push from the dark hole of the recession there is a lot at stake here; Moody’s Investor Service a globally recognized business which provides credit ratings and research covering debt instruments and securities has termed the Caesars‘ debt load as ‚unsustainable.‘

New Projects Coming On, Both Gaming and Non-Gaming

Even though the company’s Deputy General Counsel Michael Cohen told the Nevada Gaming Control Board at the summit that Caesars debt which is $10 billion more than competitor MGM Resorts International was ‚manageable,‘ he did acquiesce that ‚others disagree‘ july. And debt that slotsforfun-ca.com is new company has become accepting will go towards financing both its $550 million Linq development in the Las Vegas Strip a 300,000-square-foot al fresco development that’s to include brand new entertainment, dining and shopping outlets, plus a 550-foot-high observation wheel- as well as a new 668-room tower add-on at their flagship Las Vegas Strip Caesars Palace property.

One prepared partnership for Caesars just fell off their docket last week, and that was a minority stake with Suffolk Downs Race Track near Boston for a much-vied-for casino license in Massachusetts. From then on state’s Gaming Commission uncovered some so-called unsavory ties with now-removed partner Gansevoort involving some six-degrees-of-separation with the Russian Mob, Caesars decided the insanely nosey Commission’s reviews were a touch too ridiculous for their taste, and simply withdrew from that project completely. And itself will continue under a new, as-yet-unselected hotel-casino name while they have now removed Gansevoort from their upcoming new boutique hotel where the former Bill’s Gamblin‘ Hall once stood on the Las Vegas Strip, the $185-million project.

In essence, the restructuring plan is this: Caesars Entertainment raised $1.18 billion by going ownership of nevada Strip home Planet Hollywood, the company’s Interactive gaming division and its under-construction Baltimore Horseshoe as a brand new publicly traded holding business, Caesars Acquisition Co., of that your Entertainment division continues to obtain 57 %, while holding a buy-back option for the other 43 percent in three years. Stockholders had been provided the opportunity that to buy one share in the Acquisition brand for each share of the Entertainment brand they held if you can call it. Obviously, you do not have become Einstein to even see that if every cent of that raised money had been going towards debt paydown, it wouldn’t begin to cover even 1/10th of just what’s owed.

However, the majority of that money will get towards building and development expenses for the business’s new U.S. casinos, also as its burgeoning WSOP online brand, which is currently up and running in Nevada, and will be come November 26th in New Jersey, when that state launches its online casinos legitimately.

To be fair, maybe not every analyst views Rome burning here (we leave few easy metaphors unturned in these situs). As an example, Eilers Research gaming analyst Adam Krejcik told investors that ‚while the deal structure (and) terms of the rights providing are complex, and concerns about Caesars‘ capital structure will probably persist, we believe the near-term bias for Caesars equity shareholders is to the upside given the opportunity to possess (the holding company) at a really attractive valuation.‘

Krejcik sees the payback coming via social media marketing and mobile gambling enterprises games which are offered via Playtika and Buffalo Studios, two subsidiaries of Caesars. That being said, the 2012 total interactive revenues for these groups was just $193.3 million, which is really a long, long way from $23 billion. As well as with quotes for these two divisions being projected at $283 million for 2013 (social video gaming players pay small costs to make their virtual stacks grow), we are reminded of the famous saying oft-attributed to circus mastermind P.T. Barnum:’There’s a sucker born every minute.‘