Caesars EntertainmentCorp. has named a bankruptcy court judge to serve as its chief restructuringofficer.
The company said Robert Gerber will sit on the board's strategicalternatives committee, which comprises three independent directors.
Advised by its own legal and financial advisers, the committeeis tasked with exploring strategic alternatives, contingency planning for CaesarsEntertainment with respect to Caesars Entertainment Operating Co. Inc.'s ongoingbankruptcy proceedings and the corresponding pending litigation against the company,and providing oversight for the company's involvement in the operating unit's bankruptcyproceedings.
"Despite a proposal that would provide CEOC and its creditorswith value that Caesars Entertainment believes would be more than sufficient toaddress the findings ofthe Examiner, as well as settle the ongoing guarantee litigation pending againstthe Company, there remains disagreement between the parties, over how to quantifyand allocate this value," Strategic Alternatives Committee Chairman Fred Kleisnersaid in a release.
As part of his role, Gerber will advise on a possible CaesarsEntertainment restructuring should the company fail to settle its differences withthe operating unit and its creditors.
Caesars Entertainment noted that it and its affiliates have spentmore than $345 million on legal and professional fees tied to the since the onset of the operatingunit's bankruptcy.