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Major entertainment company reorganizes under Chapter 11

Bankruptcy is a way for people and businesses alike in Florida to get a handle on overwhelming debt. Debt can sometimes prove insurmountable, especially if it reaches a critical point. That critical point is different for everyone and is based on individual circumstances. With respect to businesses and bankruptcy, things are handled a little differently because there are a number of different entities involved. Investors, creditors, and shareholders all have a stake in a bankruptcy filing because it can impact their bottom line financially.

The operating company of Harrah's, Caesars and Horseshoe properties located throughout the United States has made the decision to file for Chapter 11 in order to reorganize its business. Chapter 11 allows a business to reorganize its business debts in order start with a fresh financial plan and obtain debt relief. Now, even though Caesars Entertainment Operating Co. has opted to file for bankruptcy, this action does not absolve them of all of their debts as they are still responsible for paying certain creditors.

Since bankruptcy is a legal proceeding, the paperwork needed for bankruptcy has to be filed properly in court. The court's involvement in bankruptcy proceedings, outside of ensuring that the process is done in accordance with the law, can vary depending on the type of case. If there are complications with the process, court involvement is likely to be more substantial and prolonged.

It is important to note the legal ramifications of bankruptcy and how it will impact a business or an individual in the long run. As such, understanding the process of filing for Chapter 11 bankruptcy is paramount for any business owner wanting to achieve debt relief.

Source: Successful Meetings, "Caesars Subsidiary to File for Chapter 11 Bankruptcy," Matt Alderton, December 29, 2014

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