Caesars Entertainment continues to examine the White home debt management strategies, it would seem; namely, when you can’t pay off your debt, acquire more, move things around on paper such as for instance a shell game, and look like you’re using action by filing a near-Obamacare sized document with the Securities and Exchange Commission (SEC).

The organization just filed a massive treatise that is 900-page the SEC, outlining how their financial obligation restructuring would happen, in case any one of there is a long flight and need help drifting off to sleep on board.

Restructured, But Not Out of Financial Obligation

The key term right here is ‘restructuring,’ because nothing within the SEC filing actually suggests any substantial techniques towards immediate paydown of the industry-high accrued long-lasting financial obligation of $23.5 billion. Just to put that in perspective, that amount is higher than what Detroit owes the American town that this summer took the honor to become the largest U.S. municipality to ever declare Chapter 9 bankruptcy security over its $18 billion in debts.

And like Detroit, Wall Street does not have much positive to express concerning the way Caesars is using, despite the fact that, like its namesake, the company keeps expanding and extending its rule to all corners of the planet. This past year, despite bringing in certain $8.6 huuuge app billion in profits, they finished 2012 with a net loss of $1.5 billion. Along with more than 50 casinos in 13 U.S. states with many of those properties nevertheless getting straight back on their feet while they push out from the dark hole of the recession there’s a lot at risk here; Moody’s Investor Service a globally recognized company which provides credit ratings and research debt that is covering and securities has termed the Caesars’ debt load as ‘unsustainable.’

New Projects Coming On, Both Gaming and Non-Gaming

And even though the business’s Deputy General Counsel Michael Cohen told the Nevada Gaming Control Board at the July summit that Caesars debt which is $10 billion a lot more than competitor MGM Resorts Overseas was ‘manageable,’ he did acquiesce that ‘others disagree’. And debt that is new company happens to be 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 add new entertainment, dining and shopping outlets, plus a 550-foot-high observation wheel- as well as a brand new 668-room tower add-on at their flagship Las Vegas Strip Caesars Palace property.

One planned partnership for Caesars just fell off their docket last week, and that was a minority stake with Suffolk Downs Race Track near Boston for the much-vied-for casino license in Massachusetts. From then on state’s Gaming Commission uncovered some alleged 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 tad too ridiculous with regards to their taste, and just withdrew from that project entirely. 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.

The company’s Interactive gaming division and its under-construction Baltimore Horseshoe into a new publicly traded holding company, Caesars Acquisition Co., of which the Entertainment division will continue to own 57 percent, while holding a buy-back option for the other 43 percent in three years in essence, the restructuring plan is this: Caesars Entertainment raised $1.18 billion by moving ownership of Las Vegas Strip property Planet Hollywood. Stockholders had been provided the chance 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 were going towards debt paydown, it couldn’t begin to cover even 1/10th of what’s owed.

However, nearly all of that money will go towards building and development costs for the business’s new U.S. casinos, aswell as its WSOP that is burgeoning online, which is currently installed and operating in Nevada, and will also be come November 26th in New Jersey, whenever that state launches its online casinos lawfully.

To be fair, not every analyst sees Rome burning here (we leave few simple 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 offering are complex, and questions about Caesars’ capital structure will probably persist, we believe the near-term bias for Caesars equity investors is to the upside given the opportunity to obtain (the holding company) at a really attractive valuation.’

Krejcik views the payback coming via social media and casinos that are mobile which are offered via Playtika and Buffalo Studios, two subsidiaries of Caesars. Having said that, the 2012 total interactive revenues for these groups was just $193.3 million, which really is a long, long way from $23 billion. As well as with estimates for these two divisions being projected at $283 million for 2013 (social video gaming players pay little fees 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.’